Consider a retail firm with a net profit margin of 3.15%, a total asset turnover of 1.82, total assets of $44.9 million, and a book value of equity of $17.4 million. c. If, in addition, the firm increased its revenues by 16% (maintaining this higher profit margin and without changing its assets or liabilities), what would be its ROE?
Consider a retail firm with a net profit margin of 3.15%, a total asset turnover of 1.82, total assets of $44.9 million, and a book value of equity of $17.4 million. c. If, in addition, the firm increased its revenues by 16% (maintaining this higher profit margin and without changing its assets or liabilities), what would be its ROE?
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 13P
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Question
Consider a retail firm with a net profit margin of
3.15%, a total asset turnover of 1.82, total assets of $44.9 million, and a book value of equity of $17.4 million.
c. If, in addition, the firm increased its revenues by
16% (maintaining this higher profit margin and without changing its assets or liabilities), what would be its ROE ?
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