Jetson Motors has total assets of $185,000. It has a profit margin of 5.8% on sales of $260,000. If the equity multiplier is 2.2, 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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I need help with this general accounting question using the proper accounting approach.

Jetson Motors has total assets of
$185,000. It has a profit margin
of 5.8% on sales of $260,000. If
the equity multiplier is 2.2, what
is its Return on Equity (ROE)?
Transcribed Image Text:Jetson Motors has total assets of $185,000. It has a profit margin of 5.8% on sales of $260,000. If the equity multiplier is 2.2, what is its Return on Equity (ROE)?
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