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Edit View History Bookmarks Window Help Help ter 3 Last year, K9 WebbWear, Inc. reported an ROE of 20 percent. The firm's debt ratio was
Edit View History Bookmarks Window Help Help ter 3 Last year, K9 WebbWear, Inc. reported an ROE of 20 percent. The firm's debt ratio was 55 percent, sales were $20 million, and the capital intensity was 1.25 times. This year, K9 Webb Wear plans to increase its debt ratio to 60 percent. The change will not affect sales or total assets, however, it will reduce the firm's profit margin to 8 percent. Calculate the net income and profit margin for K9 Webb Wear last year. (Enter your answer in milions of dollars rounded to 2 decimal places. Round your percentage answer to 2 decimal places.) Net Income last year) Profit margin last year) 225 million 11.25% By how much will the change in K9 Webb Wear's debt ratio affect its ROE? ROE (his year we decrease s
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