A firm has a return on equity of 22 percent. The total asset turnover is 2.9 and the profit margin is 5 percent. The total equity is $7,500. What is the amount of the net income?
A firm has a return on equity of 22 percent. The total asset turnover is 2.9 and the profit margin is 5 percent. The total equity is $7,500. What is the amount of the net income?
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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Net income
![A firm has a return on equity of 22
percent. The total asset turnover is 2.9
and the profit margin is 5 percent. The
total equity is $7,500. What is the
amount of the net income?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1723d65d-ec97-4a8a-9cb8-cb16947af686%2Fa0b8f9af-861b-4c79-8608-db60c5e4fbfb%2Fbxqh9xo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A firm has a return on equity of 22
percent. The total asset turnover is 2.9
and the profit margin is 5 percent. The
total equity is $7,500. What is the
amount of the net income?
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