If BlueSky Corporation has an equity multiplier of 1.60, total asset turnover of 2.10, and a profit margin of 7.2 percent, what is its 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
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If BlueSky Corporation has an
equity multiplier of 1.60, total
asset turnover of 2.10, and a
profit margin of 7.2 percent,
what is its Return on Equity
(ROE)?
Transcribed Image Text:If BlueSky Corporation has an equity multiplier of 1.60, total asset turnover of 2.10, and a profit margin of 7.2 percent, what is its Return on Equity (ROE)?
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