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Business, 30.11.2019 02:31 bryantjorell

How return on equity be different if a company were to issue $100,000 of 10% bonds instead of $100,000 in stock? assume income before interest and taxes is estimated to be $100,000, income taxes are 21% and stockholders' equity is initially $200,000. return on equity would be would be the same higher with bonds lower with bonds

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