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The answer is 59%, please show how we derive the calculations for the answer Assume that the following financial ratios were computed from the 2014

image text in transcribedThe answer is 59%, please show how we derive the calculations for the answer

Assume that the following financial ratios were computed from the 2014 financial statements of Carolina Industries: Return on sales (profit margin) 0.10 Return on total assets 0.17 Common equity leverage 0.87 Capital structure leverage 2.22 Asset turnover 1.69 If Carolina holds its other ratios constant in 2015, but increases its profit margin to 35%, the 2015 return on total assets will be closest to: 78% 5% 51%

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