Meridian Pharmaceuticals has a profit margin of 10% and an equity multiplier of 3.2. Its sales are $225 million, and it has total assets of $90 million. What is Meridian Pharmaceuticals' Return on Equity (ROE)? Round your answer to two decimal places. A. 25.00% B. 64.00% C. 80.00% D. 32.00%

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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Meridian Pharmaceuticals has a profit margin of 10% and an equity
multiplier of 3.2. Its sales are $225 million, and it has total assets of $90
million.
What is Meridian Pharmaceuticals' Return on Equity (ROE)? Round your
answer to two decimal places.
A. 25.00%
B. 64.00%
C. 80.00%
D. 32.00%
Transcribed Image Text:Meridian Pharmaceuticals has a profit margin of 10% and an equity multiplier of 3.2. Its sales are $225 million, and it has total assets of $90 million. What is Meridian Pharmaceuticals' Return on Equity (ROE)? Round your answer to two decimal places. A. 25.00% B. 64.00% C. 80.00% D. 32.00%
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