The board of directors is dissatisfiled with last year's ROE of 12%. If the operating profit margin and asset turnover ratio remain unchanged at 8% and 1.25, respectively , by how much the leverage ratio (i.e., assets/equity) increase to achieve 20% ROE? Please show your work.

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Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.