Consider a retail firm with a net profit margin of 3.17%, a total asset turnover of 1.73, total assets of $44.2 million, and a book value of equity of $18.5 million.

a. What is the firm’s current ROE?

b. If the firm increased its net profit margin to 4.09%, what would its ROE be?

c. If, in addition, the firm increased its revenues by 22% (while maintaining this higher profit margin and without changing its assets or liabilities), what would its ROE be?