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PC79 you just stated the formula, I knew that formula when I looked at the answer key. I was asking for an explanation why ROA or (NPM*Asset Turnover) / NPM = Asset Turnover.

I can make sense with [ROE / NPM] / Leverage = Asset Turnover

ROE = NPM * ASSET TURNOVER * LEVERAGE so just divide ROE by Leverage, then by NPM u get Asset Turnover.

Perfect.