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QUESTION 4 2.5 points Save Answer For fiscal year 2017, Costco Wholesale Corporation had a net profit margin of 2.08%, asset turnover of 3.55, and
QUESTION 4 2.5 points Save Answer For fiscal year 2017, Costco Wholesale Corporation had a net profit margin of 2.08%, asset turnover of 3.55, and a book equity multiplier of 3.37. a. Compute Costco's ROE. (Round to two decimal places.) b. If Costco's managers wanted to increase its ROE by 1.00 percentage points, how much higher would their new asset turnover need to be? (Round to two decimal places.) c. If Costco's net profit margin fell by 1.00 percentage points, by how much would their asset turnover need to increase to maintain their ROE? (Round to two decimal places.) Type your answers in the allocated space: a. ROE is b. The new asset turnover is which 3 is an increase of c. The new asset turnover is which 2 is an increase of
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