What is its return on equity if x increases its debt-equity


DuPont Identity. X Corp. has net income of $20 million, Sales of $100 million, asset turnover of .6, and debt-equity ratio of 40%.

a. What is its return on equity?

b. If X increases its debt-equity ratio to 60%, what happens to its return on equity?

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Financial Management: What is its return on equity if x increases its debt-equity
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