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You are considering adding a new product to your firm's existing product line. It should cause a 15 percent increase in your total margin (i.e.,

You are considering adding a new product to your firm's existing product line. It should cause a
15 percent increase in your total margin (i.e., new TM = old TM x 1.15), but it will also require
a 50 percent increase in total assets (i.e., new TA = old TA x 1.5). You expect to finance this asset
growth entirely by debt. If the following ratios were computed before the change, what will be

the new return on equity if the new product is added and sales remain constant?

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