Question 28 1 pts Junjun and Co. have a debt ratio of 0.50, a total asset turnover of 0.25, and a profit margin of 10%.
Question 28 1 pts Junjun and Co. have a debt ratio of 0.50, a total asset turnover of 0.25, and a profit margin of 10%. The president is unhappy with the current return on equity and he thinks it could be doubled. This could be accomplished (1) by increasing the profit margin to 14%, and (2) by increasing debt utilization. Total assets turnover will not change. What new debt ratio, along with the 14% profit margin, is required to double the return on equity? O 0.75 O 0.55 O 0.65 O 0.70
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