Pinnacle Biotech has a profit margin of 5%, an equity multiplier of 3.0, and sales of $95 million. The company has total assets of $38 million. What is Pinnacle's Return on Equity (ROE)? (Round your answer to two decimal places.) a) 32.45% b) 37.50% c) 42.75% d) 18.90%

Pinnacle Biotech has a profit margin of 5%, an equity multiplier of 3.0, and sales of $95 million. The company has total assets of $38 million. What is Pinnacle's Return on Equity (ROE)? (Round your answer to two decimal places.) a) 32.45% b) 37.50% c) 42.75% d) 18.90%

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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I am trying to find the accurate solution to this general accounting problem with the correct explanation.

Pinnacle Biotech has a profit margin of 5%, an equity
multiplier of 3.0, and sales of $95 million. The company
has total assets of $38 million.
What is Pinnacle's Return on Equity (ROE)? (Round your
answer to two decimal places.)
a) 32.45%
b) 37.50%
c) 42.75%
d) 18.90%

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