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Franky’s Furniture has a taxable income of $197,400, ROA of 4

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Franky’s Furniture has a taxable income of $197,400, ROA of 4.8 percent, a debt-equity ratio of 0.72, and a very smart CFO. What is the firm’s ROE?

A.

11.67 percent

B.

14.45 percent

C.

8.26 percent