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NEW QUESTION: 1
Section C (4 Mark)
You are considering adding a new product to your firm's existing product line. It should cause a 15 percent increase in your profit margin (i.e., new PM = old PM x 1.15), but it will also require a 50 percent increase in total assets (i.e., new TA = old TA x 1.5). You expect to finance this asset growth entirely by debt. If the following ratios were computed before the change, what will be the new ROE if the new product is added and sales remain constant?

A. 40%
B. 11%
C. 46%
D. 20%
Answer: C

NEW QUESTION: 2

A. Windows Server 2008
B. Windows Server 2008 R2
C. Windows Server 2003
D. Windows Server 2012
Answer: C

NEW QUESTION: 3



A. Option C
B. Option A
C. Option B
D. Option D
Answer: C