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Last year YYY Company had a 8% net profit margin based on $33,000,000 in sales and $15,000,000 of total assets. During the coming year, the
Last year YYY Company had a 8% net profit margin based on $33,000,000 in sales and $15,000,000 of total assets. During the coming year, the president has set a goal of attaining a 18% return on total assets. If YYY finances 60% of its assets by borrowing, what will its return on common equity be next year if the return on assets goal is achieved? Question 25 options: 1) 30.00% 2) 45.00% 3) 36.66% 4) 49.38% 5) 26.92%
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