Wellington Corporation has total assets of $50,000. It has a profit margin of 6.2 percent on sales of $120,000. If the equity multiplier is 1.8, what is its ROE?
Wellington Corporation has total assets of $50,000. It has a profit margin of 6.2 percent on sales of $120,000. If the equity multiplier is 1.8, what is its 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
Question
100%
What is its ROE on these financial accounting question?
![Wellington Corporation has total assets of
$50,000. It has a profit margin of 6.2 percent on
sales of $120,000. If the equity multiplier is 1.8,
what is its ROE?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffafcd3a0-dd9f-40e5-9107-146f84b2134d%2F1c90e336-2809-410b-a752-2702ea0af7e2%2Foza4hej_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Wellington Corporation has total assets of
$50,000. It has a profit margin of 6.2 percent on
sales of $120,000. If the equity multiplier is 1.8,
what is its ROE?
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