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A firm has a profit margin of 3 percent and an equity multiplier of 2. Its sales are $155 million and it has total assets

A firm has a profit margin of 3 percent and an equity multiplier of 2. Its sales are $155 million and it has total assets of $55 million. What is its return on equity (ROE)?

a.

4.23%
b.

8.45%
c.

2.13%
d.

27.05%
e.

16.91%

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