Precious Metal Mining has $12 million in sales, its ROE is 12%, and its total assets turnover is 4 times. Common equity on the firm's balance sheet is 40% of its total assets. What is its net income? Round the answer to the nearest cent.

Precious Metal Mining has $12 million in sales, its ROE is 12%, and its total assets turnover is 4 times. Common equity on the firm's balance sheet is 40% of its total assets. What is its net income? Round the answer to the nearest cent.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 13P

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Need help the general accounting question

Precious Metal Mining has $12 million in sales, its
ROE is 12%, and its total assets turnover is 4 times.
Common equity on the firm's balance sheet is 40% of
its total assets. What is its net income? Round the
answer to the nearest cent.

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