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Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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Hello tutor can you please give correct answer?
![Consider a retailing firm with a net profit margin
of 3.6%, a total asset turnover of 1.88, total assets
of $43.4 million, and a book value of equity of
$18.8 million.
A. What is the firm's current ROE?
B. If the firm increased its net profit margin to
4.1%, what would be its ROE?](https://content.bartleby.com/qna-images/question/f1335d40-98ea-452f-8dc5-79a6a3a643ee/4134f5f9-086c-4a29-a6c7-d4eb73158edd/2yp3nk8_thumbnail.jpeg)
Transcribed Image Text:Consider a retailing firm with a net profit margin
of 3.6%, a total asset turnover of 1.88, total assets
of $43.4 million, and a book value of equity of
$18.8 million.
A. What is the firm's current ROE?
B. If the firm increased its net profit margin to
4.1%, what would be its ROE?
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