managerial accounting Lexington Corporation has a profit margin of 5% and an equitymultiplier of 2.8. The company reports $90 million in sales andtotal assets of $36 million.What is Lexington Corporation's Return on Equity (ROE)?(Round your answer to two decimal places.)

Step 1: Definition of Return on Equity (ROE)Return on Equity (ROE) measures a company's…

Answered: Lexington Corporation has a profit…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 2P

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Lexington Corporation has a profit margin of 5% and an equity multiplier of 2.8. The company reports $90 million in sales and total assets of $36 million. What is Lexington Corporation's Return on Equity (ROE)? (Round your answer to two decimal places.)