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An investor, eager to make informed decisions, encounters a dilemma while conducting DuPont analysis on a potential investment opportunity. Knowing the values of the asset

An investor, eager to make informed decisions, encounters a dilemma while conducting DuPont analysis on a potential investment opportunity. Knowing the values of the asset turnover ratio, net profit ratio, and financial leverage multiplier ratio as 1.5 times, 20% and 2 times respectively; the investor expects to gain insight into the company's financial health. The investor understands that a thorough examination is crucial for making sound investment decisions and maximising returns while mitigating potential risks.
Required:
Compute the Return on Equity (ROE) and offer a succinct evaluation regarding the profitability of the investment. (5 marks)

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