Sam Enterprises has a return on equity of 14.8%. The debt-equity ratio is 52%, and the capital intensity ratio is 1.15. The company has current assets of $165,000. What is the profit margin?

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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Solve this financial accounting problem

Sam Enterprises has a return on
equity of 14.8%. The debt-equity ratio
is 52%, and the capital intensity ratio
is 1.15. The company has current
assets of $165,000. What is the profit
margin?
Transcribed Image Text:Sam Enterprises has a return on equity of 14.8%. The debt-equity ratio is 52%, and the capital intensity ratio is 1.15. The company has current assets of $165,000. What is the profit margin?
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