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Choose the correct answer. If a firm has an equity multiplier of 1.55, total asset turnover of 1.5, and a profit margin of 7.5 percent,
Choose the correct answer.
If a firm has an equity multiplier of 1.55, total asset turnover of 1.5, and a profit margin of 7.5 percent, then its ROE is _____.
a. 2.32%
b. 14.77%
c. 11.65%
d. 10.33%
e. Cannot be determined.
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