Consider a retailing firm with a net profit margin of 3.6%, a total asset turnover of 1.86, total assets of $43.3 million, and a book value of equity of $18.8 million.

a. What is thefirm's currentROE?

b. If the firm increased its net profit margin to 4.1%, what would be itsROE?

c. If, inaddition, the firm increased its revenues by 17% (while maintaining this higher profit margin and without changing its assets orliabilities), what would be itsROE?