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A firm has sales of $428,000, costs of $289,000, and net income of $36,000. The total asset turnover is 1.2 and the debt-equity ratio is

A firm has sales of $428,000, costs of $289,000, and net income of $36,000. The total asset turnover is 1.2 and the debt-equity ratio is 0.4. What is the return on equity?

1.10.50 %

2.14.13 %

3.9.81 %

4.12.74 %

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