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16. Drake Co. has total equity of 640,400 and net income of 50,000. The debt-equity ratio is 0.50 and the total asset turnover is 1.4.

16. Drake Co. has total equity of 640,400 and net income of 50,000. The debt-equity ratio is 0.50 and the total asset turnover is 1.4. What is the profit margin?
A) 3.72%
B) 4.86%
C) 6.68%
D) 7.24%

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