I need this question answer financial accounting Firm M has a margin of 9%, turnover of1.6, sales of $800,000, and averagestockholders' equity of $360,000.Calculate Firm M's return on equity(ROE).

Step 1: Calculation of Net IncomeNet Income = Sales × Profit marginNet Income = $800,000 × 9%Net…

Answered: Firm M has a margin of 9%, turnover of…

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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Firm M has a margin of 9%, turnover of 1.6, sales of $800,000, and average stockholders' equity of $360,000. Calculate Firm M's return on equity (ROE).