The Bubble Company has a return on equity of 4.5%. Bubble's debt-equity ratio is 0.4 and Bubble's management intends to maintain it at this level for the foreseeable future. If Bubble's asset turnover remains the same for the foreseeable future at 2.0, what is Bubble's current net profit margin, and what would Bubble's net profit margin have to be to raise the return on equity to 5%?

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The Answer of The Bubble Company has a return on equity of 4.5%. Bubble's debt-equity ratio is 0.4 and Bubble's management intends to maintain it at this level for the foreseeable future. If Bubble's asset turnover remains the same for the foreseeable future at 2.0, what is Bubble's current net profit margin, and what would Bubble's net profit margin have to be to raise the return on equity to 5%?

The Bubble Company Has a Return on Equity of 4