A company has a profit margin of 25 an asset turnover ratio


A company has a profit margin of 25%, an asset turnover ratio of 1.5, and an equity multiplier ratio of 1.65, both the tax burden and the interest burden are at 1, if the profit margin increases to 20% but the asset turnover ratio decreases to 1.3, what will be company’s new ROE?

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Financial Management: A company has a profit margin of 25 an asset turnover ratio
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