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5. For fiscal year 2011, Peet's Coffee and Tea (PEET) had a net profit margin of 4.78%, asset turnover of 1.73, and a leverage of

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5. For fiscal year 2011, Peet's Coffee and Tea (PEET) had a net profit margin of 4.78%, asset turnover of 1.73, and a leverage of 1.21. a. Use this data to compute Peet's' ROE using the DuPont Identity. b. If Peet's managers wanted to increase its ROE by one percentage point, how much higherwould their asset turnover need to be? Financial Analysis 2 Equity and DuPont Analysis c. If Peet's net profit margin fell by one percentage point, by how much would their asset turnover need to increase to maintain their ROE

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