Northridge Biotech has a profit margin of 4.2% and an equity multiplier of 1.9. Its sales are $95 million and it has total assets of $76 million. What is its Return on Equity (ROE)?

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
icon
Related questions
Question

I am searching for the accurate solution to this financial accounting problem with the right approach.

Northridge Biotech has a profit margin of
4.2% and an equity multiplier of 1.9. Its sales
are $95 million and it has total assets of $76
million.
What is its Return on Equity (ROE)?
Transcribed Image Text:Northridge Biotech has a profit margin of 4.2% and an equity multiplier of 1.9. Its sales are $95 million and it has total assets of $76 million. What is its Return on Equity (ROE)?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer