Consider a retail firm with a net profit margin of

3.95%,

a total asset turnover of

1.81,

total assets of

$42.8

million, and a book value of equity of

$18.1

million.

a. What is the firm's current ROE?

b. If the firm increased its net profit margin to

4.92%,

what would be its ROE?

c. If, in addition, the firm increased its revenues by

23%

(maintaining this higher profit margin and without changing its assets or liabilities), what would be its ROE?