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A firm s total assets is $ 8 . 1 M with sales of $ 1 1 M . In addition its profit margin is

A firms total assets is $8.1M with sales of $11M. In addition its profit margin is 6.5% and its debt is 40% of total assets. The firm finances using only debt and common equity and total assets equal total invested capital. a. Find equity multiplier b. Find the return on equity.

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