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Calvert Corp. has sales of $100 million, assets of $75 million, and liabilities of $25 million. Its managers decide that they can focus on increasing
Calvert Corp. has sales of $100 million, assets of $75 million, and liabilities of $25 million. Its managers decide that they can focus on increasing its profit margin to match the industrys ROE. The industry profit margin is 10%, total asset turnover is 1.2, and equity multiplier is 1.8. What is the target profit margin for Calvert Corp.?
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