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  3. 2.8 consider a retailing firm with a net profit m

2.8 Consider a retailing firm with a net profit margin of \3.2, a total...

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2.8

Consider a retailing firm with a net profit margin of \3.2, a total asset turnover of 1.74 , total assets of \\( \\$ 43.5 \\) million, and a book value of equity of \\( \\$ 17.9 \\) million. a. What is the firm's current ROE? b. If the firm increased its net profit margin to \3.7, what would be its ROE? c. If, in addition, the firm increased its revenues by \20 (while maintaining this higher profit margin and without changing its assets or liabilities), what would be its ROE

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