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Compute (a) return on equity (ROE), (b) market-to- book (M/B) ratio, and (c) enterprise value based on the following information: net profit margin = 4%,

Compute (a) return on equity (ROE), (b) market-to- book (M/B) ratio, and (c)

enterprise value based on the following information: net profit margin = 4%, asset turnover = 1.5, debt = $60 million (assuming that the book value and market value of debt are the same), book value of assets = $100 million, market capitalization = $80 million, cash = $20 million.

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