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Adams operates his $60000 firm using his own equity. Bob operates his firm with $30000 of his own money plus $30000 of debt at a cost of 5 percent interest. Calculate Adams's and Bob's return on equity if their respective businesses produce earnings before interest and tax of $6000. Assume perfect markets.

Adams's return on equity: %___

Bob's return on equity: %____

Place your answer in percentage form with two decimal places. For example, an answer of eleven point five zero percent would be entered 11.50.

Financial Management, Finance

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