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Suppose That Chicken Express,Inc

question 44

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Suppose that Chicken Express,Inc.has a ROA of 7% and pays a 6% coupon on its debt.Chicken Express has a capital structure that is 70% equity and 30% debt.Relative to a firm that is 100% equity-financed,Chicken Express's Net Profit will be ________ and its ROE will be ________.


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