Needham Pharmaceuticals has a profit margin of 4% and an equity multiplier of 4. Its sales are $80 million and it has total assets of $40 million. What is its ROE? A. 50% B. 4% C. 32% D. 16% E. 12%
Needham Pharmaceuticals has a profit margin of 4% and an equity multiplier of 4. Its sales are $80 million and it has total assets of $40 million. What is its ROE? A. 50% B. 4% C. 32% D. 16% E. 12%
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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General accounting

Transcribed Image Text:Needham Pharmaceuticals has a profit margin of 4% and
an equity multiplier of 4. Its sales are $80 million and it
has total assets of $40 million.
What is its ROE?
A. 50%
B. 4%
C. 32%
D. 16%
E. 12%
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