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Alpha Innovations has the following financial ratios: Total Asset Turnover (TATO) = 1.8x Net Profit Margin = 5% Debt Ratio (DR) = 30% What will be their Return on Assets (ROA) and Return on Equity (ROE)?

Alpha Innovations has the following financial ratios: Total Asset Turnover (TATO) = 1.8x Net Profit Margin = 5% Debt Ratio (DR) = 30% What will be their Return on Assets (ROA) and 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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Alpha Innovations has the following financial ratios: Total Asset Turnover (TATO) = 1.8x Net Profit Margin = 5% Debt Ratio (DR) = 30% What will be their Return on Assets (ROA) and Return on Equity (ROE)?
Transcribed Image Text:Alpha Innovations has the following financial ratios: Total Asset Turnover (TATO) = 1.8x Net Profit Margin = 5% Debt Ratio (DR) = 30% What will be their Return on Assets (ROA) and Return on Equity (ROE)?
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