What is its return on equity for these financial accounting question? Northbridge Enterprises has total assets of $75,000. It has a profitmargin of 6.2% on sales of $150,000. If the equity multiplier is 1.8,what is its Return on Equity (ROE)?

Step 1: Define Return on Equity (ROE)Return on Equity (ROE) is a measure of a company's…

Answered: Northbridge Enterprises has total…

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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Northbridge Enterprises has total assets of $75,000. It has a profit margin of 6.2% on sales of $150,000. If the equity multiplier is 1.8, what is its Return on Equity (ROE)?