In 2022, Toronto Skaters earned a return on investment (ROI) of 15% and had a cost of debt of 7%.The book value of debt was $25,000 and the book value of shareholders' equity was $30,000.The firm faces a tax rate of 30%.The firm's return on equity (ROE) is:
A) 19.92%
B) 22.08%
C) 23.42%
D) 27.12%
Correct Answer:
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