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?

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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What is its ROE ?

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?
Transcribed Image Text: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?
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