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Travel Corp. has net income of $2 million, an effective tax rate of 35%, interest expense of $400,000, sales of $30 million, and $15 million
Travel Corp. has net income of $2 million, an effective tax rate of 35%, interest expense of $400,000, sales of $30 million, and $15 million in total assets, of which $5 million is debt. Use the DuPont system to calculate its ROE, decomposed into leverage ratio, asset turnover, profit margin, and debt burden.
profit margin = ??
asset turnover = ??
equity multiplier = ??
return on equity = ??
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