Consider a retail firm with a net profit margin of 5.5%, a total asset turnover of 2.4, total assets of \($53\) million, and a book value of equity of \($25\) million.

a. What is the firm’s current ROE?

b. If the firm increased its net profit margin to 6%, what would its ROE be?

c. If, in addition, the firm increased its revenues by 25% (while maintaining this higher profit margin and without changing its assets or liabilities), what would its ROE be?