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A firm has a profit margin of 6% and an equity multiplier of 2.5. Its sales are $420 million, and it has total assets of $168 million. What is its ROE (Return on Equity)?

A firm has a profit margin of 6% and an equity multiplier of 2.5. Its sales are $420 million, and it has total assets of $168 million. 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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What is the ROE

A firm has a profit margin of 6% and an equity multiplier of 2.5. Its sales are $420 million, and it has total assets of $168 million. What is its ROE (Return on Equity)?
Transcribed Image Text:A firm has a profit margin of 6% and an equity multiplier of 2.5. Its sales are $420 million, and it has total assets of $168 million. What is its ROE (Return on Equity)?
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