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This year, Acme Inc achieved a 1.7% profit margin on $45,000 of net income. Their asset turnover was 1.79 on $1,500,000 of total assets. The
This year, Acme Inc achieved a 1.7% profit margin on $45,000 of net income. Their asset turnover was 1.79 on $1,500,000 of total assets. The board of directors however is dissatisfied with last year's ROA of 0.03 and want management to increase ROA next year to 0.11 . They also specify that the net profit margin remain unchanged and total assets grow by 3%. What is the target growth rate in net income needed to meet the board's goal? 277.7% 182.6% 210.0% 241.4% 158.8%
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