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A company has a profit margin of 8% and an asset turnover ratio of 1.8. Its total assets are $240 million, and it has a debt-to-equity ratio of 0.6. What is its ROE (Return on Equity)?

A company has a profit margin of 8% and an asset turnover ratio of 1.8. Its total assets are $240 million, and it has a debt-to-equity ratio of 0.6. What is its ROE (Return on Equity)?

Intermediate Financial Management (MindTap Course List)
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 8% and an asset turnover ratio of 1.8. Its total assets are $240 million, and it has a debt-to-equity ratio of 0.6. What is its ROE (Return on Equity)?
Transcribed Image Text:A company has a profit margin of 8% and an asset turnover ratio of 1.8. Its total assets are $240 million, and it has a debt-to-equity ratio of 0.6. What is its ROE (Return on Equity)?
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