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You are given the following information about a firm: Return on assets (ROA) is 12 percent, and total assets are $5,200,000. The firm's common equity is $40 per share, and there are 120,000 shares of common stock outstanding. What is the return on equity (ROE) for the firm?

You are given the following information about a firm: Return on assets (ROA) is 12 percent, and total assets are $5,200,000. The firm's common equity is $40 per share, and there are 120,000 shares of common stock outstanding. What is the return on equity (ROE) for the firm?

Intermediate Financial Management (MindTap Course List)
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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What is the return on equity

You are given the following information about a firm: Return on assets (ROA) is 12 percent, and total assets are $5,200,000. The firm's common equity is $40 per share, and there are 120,000 shares of common stock outstanding. What is the return on equity (ROE) for the firm?
Transcribed Image Text:You are given the following information about a firm: Return on assets (ROA) is 12 percent, and total assets are $5,200,000. The firm's common equity is $40 per share, and there are 120,000 shares of common stock outstanding. What is the return on equity (ROE) for the firm?
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