What is the return on equity of this financial accounting question? Hendrix & Co. has:Net Income = $162,500Sales = $1,020,000Capital Intensity Ratio = 0.68Equity Multiplier = 1.4What is the return on equity (ROE)?

Step 1: Define Return on Equity (ROE)Return on Equity (ROE) measures a company's profitability…

Answered: Hendrix & Co. has: 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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Hendrix & Co. has: Net Income = $162,500 Sales = $1,020,000 Capital Intensity Ratio = 0.68 Equity Multiplier = 1.4 What is the return on equity (ROE)?