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Aero Link Technologies has total assets of $85,000. It has a profit margin of 7.5% on sales of $200,000. If the equity multiplier is 2.1, what is its Return on Equity (ROE)?

Aero Link Technologies has total assets of $85,000. It has a profit margin of 7.5% on sales of $200,000. If the equity multiplier is 2.1, what is its Return on Equity (ROE)?

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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Please explain this financial accounting problem with accurate financial standards.

Aero Link Technologies has total assets of $85,000. It has a profit margin of 7.5% on sales of $200,000. If the equity multiplier is 2.1, what is its Return on Equity (ROE)?
Transcribed Image Text:Aero Link Technologies has total assets of $85,000. It has a profit margin of 7.5% on sales of $200,000. If the equity multiplier is 2.1, what is its Return on Equity (ROE)?
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