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Consider two firms, say A and B, in two different industries. Firm A's asset turnover is 2 and its net profit margin is 0.8. Firm

Consider two firms, say A and B, in two different industries. Firm A's asset turnover is 2 and its net profit margin is 0.8. Firm A is fully equity funded. Firm B's asset turnover is 1.2 and its net profit margin is 0.8. What is the Debt/Equity ratio for firm B such that the two firms have the same return on equity?

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