A company's net profit margin is 5.5%, its total asset turnover is 2.2 times, and its debt ratio is 30%. What is the company's return on equity (ROE)? a. 13.75% b. 15.71% c. 17.29% d. 19.25% e. 21.08%

A company's net profit margin is 5.5%, its total asset turnover is 2.2 times, and its debt ratio is 30%. What is the company's return on equity (ROE)? a. 13.75% b. 15.71% c. 17.29% d. 19.25% e. 21.08%

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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Question

What is the company's return on equity (ROE).? General accounting

A company's net profit margin is 5.5%, its total asset turnover
is 2.2 times, and its debt ratio is 30%. What is the company's
return on equity (ROE)?
a. 13.75%
b. 15.71%
c. 17.29%
d. 19.25%
e. 21.08%

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