Question
Consider a retail firm with a net profit margin of 3.81%, a total asset turnover of 1.75, total assets of $42.3million, and a book value
Consider a retail firm with a net profit margin of 3.81%, a total asset turnover of 1.75, total assets of $42.3million, and a book value of equity of $18.8million. a. What is the firm's current ROE? b. If the firm increased its net profit margin to 4.42%, what would be its ROE? c. If, in addition, the firm increased its revenues by 25%(maintaining this higher profit margin and without changing its assets or liabilities), what would be its ROE?
What is the firm's current ROE?
The firm's current ROE is ___% ? (Round to one decimal place.)
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Monetary Policy Strategy
Authors: Frederic S. Mishkin
1st Edition
0262513374, 978-0262513371
