A firm has a profit margin of 6% and an equity multiplier of 1.8. Its sales are $280 million, and it has total assets of $112 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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Subject:-- financial accounting
A firm has a profit margin of 6% and an
equity multiplier of 1.8. Its sales are $280
million, and it has total assets of $112
million.
What is the Return on Equity (ROE)?
Transcribed Image Text:A firm has a profit margin of 6% and an equity multiplier of 1.8. Its sales are $280 million, and it has total assets of $112 million. What is the Return on Equity (ROE)?
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