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1) Bird Enterprises has no debt

Accounting

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1) Bird Enterprises has no debt. Its current total value is $47.6 million. Assume the company sells $18.7 million in debt.

 a) Ignoring taxes, what is the debt-equity ratio? 

b) Assume the company's tax rate is 23 percent. What is the debt-equity ratio? 

2) A company has $1,000,000 of debt and $3,000,000 of assets. The company's cost of debt is 4% and EBIT is $200,000. Assume there are no taxes. What is the company's ROE?