Question 21 Amarillo Associates has a debt ratio of 50 percent, a total asset turnover ratio of 0.5, and a net profit margin of 10 percent. The Board of Directors is unhappy with the current return on equity (ROE), and they think it could be doubled. This could be accomplished (1) by increasing the profit margin to 12 percent, and (2) by increasing debt utilization. Total assets turnover will not change. What new debt ratio, along with the new 12 percent profit margin, would be required to double the ROE? 70.0 percent 66.7 percent 65.0 percent 33.3 percent 30.0 percent