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Question
Retailers Inc. and Computer Corp. each have assets of $10,000 and a return on common equity equal to 15%. Retailers has twice as much debt and twice as many sales relative to Computer Corp. Retailers' net income equals $750, and its total asset turnover is equal to 3. What is Computer Corp.'s profit margin?
a. 2.50%
b. 5.00%
c. 7.50%
d. 10.00%
e. 12.50%
Answer
This answer is hidden. It contains 150 characters.
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