Consider a retail firm with a net profit margin of

3.16%,

a total asset turnover of

1.88,

total assets of

$43.1

million, and a book value of equity of

$18.5

million.

a. What is the firm's current ROE?

b. If the firm increased its net profit margin to

4.11%,

what would be its ROE?

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

16%

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