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A firm has a net profit margin of 25 percent on sales of $20,000,000. If the firm has total liabilities of $7,500,000, total assets of

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A firm has a net profit margin of 25 percent on sales of $20,000,000. If the firm has total liabilities of $7,500,000, total assets of $22,500,000, and an after-tax interest cost on total debt of 7 percent, what is the firm's ROE? Cannot be determined with this information Greater than 0.40 Between 0.20 and 0.30 Less than 0.20 Between 0.30 and 0.40 Question 2 From 1926 to the present The expected risk/return relationship did not hold Long-term government bonds performed about the same as Treasury bills Asset classes with the lowest returns were the most risky Asset classes with the highest returns were the most risky

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