A technology firm, NexaTech Inc., has a profit margin of 6% and an equity multiplier of 2.5. Its sales are $500 million, and it has total assets of $150 million. What is NexaTech Inc.'s 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
icon
Related questions
Question
100%

General Accounting

A technology firm, NexaTech Inc., has a profit margin of 6% and an equity multiplier of 2.5. Its sales
are $500 million, and it has total assets of $150 million.
What is NexaTech Inc.'s Return on Equity (ROE)?
Transcribed Image Text:A technology firm, NexaTech Inc., has a profit margin of 6% and an equity multiplier of 2.5. Its sales are $500 million, and it has total assets of $150 million. What is NexaTech Inc.'s Return on Equity (ROE)?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Fundamentals of Financial Management, Concise Edi…
Fundamentals of Financial Management, Concise Edi…
Finance
ISBN:
9781305635937
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning