Consider a retail firm with a net profit margin of 3.74 %, a total asset...
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Finance
Consider a retail firm with a net profit margin of 3.74 %, a total asset turnover of 1.88, total assets of $ 43.4 million, and a book value of equity of $ 18.3 million. a. What is the firm's current ROE? b. If the firm increased its net profit margin to 4.45 %, what would be its ROE? c. If, in addition, the firm increased its revenues by 22 % (maintaining this higher profit margin and without changing its assets or liabilities), what would be its ROE?
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