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A Company has a net income of $2 million, an effective tax rate of 35%, interest expense of $400,000, an asset turnover of 2, and
A Company has a net income of $2 million, an effective tax rate of 35%, interest expense of $400,000, an asset turnover of 2, and $14 million in total assets, of which $7 million is debt. Use the DuPont system to calculate its profit margin, asset turnover, equity multiplier, and return on equity.
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