If you know that a firm has a net profit margin of 4.5%, a total asset turnover of 0.72, and a financial leverage multiplier of 1.43, what is its ROE?

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter2: Financial Statements, Cash Flow, And Taxes
Section2.8: Performance Evaluation
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Provide correct answer general Accounting

If you know that a firm has a net profit margin
of 4.5%, a total asset turnover of 0.72, and a
financial leverage multiplier of 1.43, what is its
ROE?
Transcribed Image Text:If you know that a firm has a net profit margin of 4.5%, a total asset turnover of 0.72, and a financial leverage multiplier of 1.43, what is its ROE?
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