I want to correct answer general accounting 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. Whatis its ROE?

Step 1:First calculate the assets turnover ratio: Assets turnover ratio = Sales / Total assets…

Answered: A company has a profit margin of 6% and…

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?