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XYZ Corp. has a total asset turnover ratio of 1.5 and a profit margin of 5%. XYZ has $100 million in total assets and $40 million in total owner's equity. What is the firm's return on equity (ROE)?

Select one:

a. 7.50%

b. 12.00%

c. 18.75%

d. 20.50%

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