You have the following data for a company. What is the return on assets (ROA)? Return on equity =15 %; Earnings before taxes = $50,000; Total assets turnover = 1.2; Profit margin = 7.5%; Tax rate = 35%.

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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Financial accounting

You have the following data for a company. What is
the return on assets (ROA)?
Return on equity =15 %; Earnings before taxes =
$50,000; Total assets turnover = 1.2; Profit margin =
7.5%; Tax rate = 35%.
Transcribed Image Text:You have the following data for a company. What is the return on assets (ROA)? Return on equity =15 %; Earnings before taxes = $50,000; Total assets turnover = 1.2; Profit margin = 7.5%; Tax rate = 35%.
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