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Katy, Inc., has a profit margin of 6.4 percent on sales of $18,750,000. Assume the firm has a debt of $6,200,000 and total assets of $12,800,000. What is the firm's ROA?

Katy, Inc., has a profit margin of 6.4 percent on sales of $18,750,000. Assume the firm has a debt of $6,200,000 and total assets of $12,800,000. What is the firm's ROA?

Intermediate Financial Management (MindTap Course List)
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 5P: Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 2.0. Its sales are...
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Katy, Inc., has a profit margin of 6.4 percent on sales of $18,750,000. Assume the firm has a debt of $6,200,000 and total assets of $12,800,000. What is the firm's ROA?
Transcribed Image Text:Katy, Inc., has a profit margin of 6.4 percent on sales of $18,750,000. Assume the firm has a debt of $6,200,000 and total assets of $12,800,000. What is the firm's ROA?
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