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Consider a retail firm with a net profit margin of 3.50%, a total asset turnover of 1.80, total assets of $44.0 million, and a book

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Consider a retail firm with a net profit margin of 3.50%, a total asset turnover of 1.80, total assets of $44.0 million, and a book value of equity of $18.0 million. a. What is the firm's current ROE? b. If the firm increased its net profit margin to 4.00%, what would be its ROE? c. If, in addition, the firm increased its revenues by 20% (maintaining this higher profit margin and without changing its assets or liabilities), what would be its ROE? a. What is the firm's current ROE? The firm's current ROE is 154%. (Round to one decimal place.) b. If the firm increased its net profit margin to 4.00%, what would be its ROE? The new ROE would be 17.6% (Round to one decimal place.) c. If, in addition, the firm increased its revenues by 20% (maintaining this higher profit margin and without changing its assets or liabilities), what would be its ROE? Tho now ROE would be [% (Round to one decimal place.)

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