A company has a profit margin of 3.8% and an equity multiplier of 2.2. Its sales are $420 million, and it has total assets of $210 million. What is its ROE (Return on Equity)?

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
icon
Related questions
Question

Solve this question and accounting question

A company has a profit margin of 3.8% and an equity multiplier of 2.2. Its
sales are $420 million, and it has total assets of $210 million. What is its ROE
(Return on Equity)?
Transcribed Image Text:A company has a profit margin of 3.8% and an equity multiplier of 2.2. Its sales are $420 million, and it has total assets of $210 million. What is its ROE (Return on Equity)?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer