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Given the following information: The rate of return on assets (Ra)...

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Accounting

Given the following information:

The rate of return on assets (Ra)

.16

The cost of debt (i)

.05

The standard Deviation of Ra ()

.09

The Tax Rate (t)

.25

Calculate the risk as defined by the standard deviation of the rate of return to equity if leverage is 1.5.

.0525

.16875

.58102

None of the answers are correct

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