As you can calculate, in Year 2 the firm's profit margin is 2.68%, ROA is 2.2808511%,

and ROE is 8.4780316%. Assume that the firm could have increased its equity

multiplier to 4.50 by issuing debt and using the proceeds to repurchase equity (debt

increases, equity decreases, and the equity multiplier increases) while holding total

assets and total asset turnover constant. What would the firm's profit margin have to

have been in order for it to have achieved an ROE of 12.00 percent?