What is its ROE ? General accounting A business has a profit margin of 4.5% and an equity multiplier of1.8. Its sales are $250 million, and it has total assets of $100 million.What is its ROE?

The formula for Return on Equity (ROE) is derived using the DuPont Identity: ROE = Profit Margin ×…

Answered: A business has a profit margin of 4.5%…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 6P

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A business has a profit margin of 4.5% and an equity multiplier of 1.8. Its sales are $250 million, and it has total assets of $100 million. What is its ROE?