A company has a profit margin of 6%, an equity multiplier of 2, and sales of $200 million. Total assets are $100 million. What is the Return on Equity (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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Please provide the correct solution to this financial accounting question using valid principles.

A company has a profit margin of 6%, an equity multiplier of 2, and sales of
$200 million. Total assets are $100 million.
What is the Return on Equity (ROE)?
Transcribed Image Text:A company has a profit margin of 6%, an equity multiplier of 2, and sales of $200 million. Total assets are $100 million. What is the Return on Equity (ROE)?
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