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Problem: Net profit margin is 0.10. Asset turnover is 0.125. Financial leverage is 1.6. Compute the return on equity. A) 1.5% B) 1.0% C) 2.0% D) 2.5%

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Net profit margin is 0.10. Asset turnover is 0.125. Financial leverage is 1.6. Compute the return on equity.

A) 1.5%

B) 1.0%

C) 2.0%

D) 2.5%

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