What is its return on equity

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Reference no: EM131814677

DuPont Identity. X Corp. has net income of $20 million, Sales of $100 million, asset turnover of .6, and debt-equity ratio of 40%.

a. What is its return on equity?

b. If X increases its debt-equity ratio to 60%, what happens to its return on equity?

Reference no: EM131814677

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