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McKeown and Company currently has - An equity multiplier of 2.50, - A total asset turnover of 0.75, - And a profit margin of 10%.

McKeown and Company currently has

- An equity multiplier of 2.50,

- A total asset turnover of 0.75,

- And a profit margin of 10%.

The president is unhappy with the current ROE (return on equity) and he thinks it could be doubled. He will accomplish this by:

- Increasing the profit margin to 12%

- And by increasing debt utilization

- However, total asset turnover will not change.

What should be the new equity multiplier and total debt ratio to double the return on equity? USE AT LEAST 4 DECIMAL PLACES

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