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1. Hoagland Corporation had $ 60 million of assets, $120 million of sales, $3 million of net income, and a debt ratio of 65%.

1. Hoagland Corporation had $ 60 million of assets, $120 million of sales, $3 million of net income, and a debt ratio of 65%. a. What is its ROE? (5 marks) b. Explain why Du Pont equation is useful? (5 marks)

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