Financial accounting John wick Company has total assets of$162,000. It has a profit margin of 6.5percent on sales of $230,000. If the equitymultiplier is 2.5, what is its ROE?

To calculate the Return on Equity (ROE), we can use the following formula: ROE = Profit Margin ×…

Answered: John wick Company has total assets 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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John wick Company has total assets of $162,000. It has a profit margin of 6.5 percent on sales of $230,000. If the equity multiplier is 2.5, what is its ROE?