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

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?
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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