How much assets will be added to meet the firm new afn

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Question - ABC Corp is a high end designer clothes business with a ROA return on assets and profit margin of 6.5% and 32.5% respectively. Asset size is P 100M generating gross sales of P 20M for the past year. It targets to grow sales by 150% but wanted to improve ROA which represents ( as a component) of the firm's profit margin. Targeting then the ROA to improve to 25% as a component to a sustained profit margin ratio improvements on ROA can be attained by excess assets still available. How much assets will be added to meet the firm's new AFN?

Reference no: EM133251868

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