Question: Use the information in the table below to answer the following: . Over the next year, the company expects to increase its asset turnover by
Use the information in the table below to answer the following: . Over the next year, the company expects to increase its asset turnover by 0.50 without affecting the EBI profit margin. This means the Asset Turnover will be the asset turnover calculated using the values below + 0.50. The EBI profit margin will be the EBI profit margin calculated using the values below.
If the company is successful, what will the company's ROA be next year? Answer in decimals and keep 4 decimals, for example 0.1234.
| Average Assets | 6,000,000 |
| Average Debt | 2,000,000 |
| Sales | 6,000,000 |
| Net Income | 167,871 |
| Interest expense | 20,000 |
| Tax rate | 27% |
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