Financial Accounting A company has a profit margin of 6.5% and an equitymultiplier of 2.8. Its sales are $750 million, and it hastotal assets of $250 million. What is its ROE?

Step 1: Introduction to the Question Return on Equity (ROE): The return on equity (ROE) ratio is a…

Answered: A company has a profit margin of 6.5%…

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 company has a profit margin of 6.5% and an equity multiplier of 2.8. Its sales are $750 million, and it has total assets of $250 million. What is its ROE?