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The rest of the test uses the information in the following balance sheet and income statement: a) What was the firm's profit margin this year?

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The rest of the test uses the information in the following balance sheet and income statement: a) What was the firm's profit margin this year? b) What was the total asset turnover this year? c) What was the firm's equity multiplier this year? d) Use the ratios you calculated in parts a-c to determine the Return on Equity by using the DuPont Identity (be sure to write the formula for the DuPont Identity, then use your answers from parts a-c to calculate). e) Suppose the values for TestCo five years ago were as follows: Profit Margin =0.16 (or 16%); Total Asset Turnover =0.55 Equity Multiplier =1.70 What was the Return on Equity (ROE) five years ago? What accounts for the change in ROE between now (parts a., b., and c.) and five years ago

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