ABC has a net profit margin of 10 percent, a total asset turnoverratio of 2.2, and a debt ratio of 3
ABC has a net profit margin of 10 percent, a total asset turnoverratio of 2.2, and a debt ratio of 30 percent. If ABC increases itsdebt ratio to 35 percent, what is the firm’s new Return on Equity?Show your answer in decimal for to three places (e.g., if youcalculated 12.3% that would be 0.123 in decimal form) ABC has a net profit margin of 10 percent, a total asset turnoverratio of 2.2, and a debt ratio of 30 percent. If ABC increases itsdebt ratio to 35 percent, what is the firm’s new Return on Equity?Show your answer in decimal for to three places (e.g., if youcalculated 12.3% that would be 0.123 in decimal form) . . .