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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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