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Question : A company has a profit margin of 8.8%, total asset turnover of 3.7, assets of $88, 000 and liabilities of $25, 000. How

Question: A company has a profit margin of 8.8%, total asset turnover of 3.7, assets of $88, 000 and liabilities of $25, 000. How would the ROE change if profit margin increases to 9.5%, sales decrease by 5% and all balance sheet items stay the same?

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