A company has a profit margin of 6% and an equity multiplier of 2.5. Its sales are $420 million, and it has total assets of $140 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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A company has a profit margin of 6% and an equity multiplier of 2.5.
Its sales are $420 million, and it has total assets of $140 million. What
is its ROE?
Transcribed Image Text:A company has a profit margin of 6% and an equity multiplier of 2.5. Its sales are $420 million, and it has total assets of $140 million. What is its ROE?
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