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Question
A firm has a profit margin of 15 percent on sales of $20,000,000. If the firm has a debt of $7,500,000, total assets of $22,500,000, and an interest cost on a total debt of 5 percent, what is the firm's return on total assets (ROA)? (Round answer to two decimal places.)
a. 8.47%
b. 10.94%
c. 12.02%
d. 13.33%
e. 15.18%
Answer
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Related questions
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