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Consider a retail firm with a net profit margin of 3 . 1 2 % , a total asset turnover of 1 . 7 5
Consider a retail firm with a net profit margin of a total asset turnover of total assets of $ million, and a book value of equity of $ million.
a What is the firm's current ROE?
b If the firm increased its net profit margin to what would be its ROE?
c If in addition, the firm increased its revenues by 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
Round to two decimal places.
b If the firm increased its net profit margin to what would be its ROE?
The new ROE would be
Round to two decimal places.
c If in addition, the firm increased its revenues by maintaining this higher profit margin and without changing its assets or liabilities what would be its ROE?
The new ROE would be
Round to two decimal places.
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