Profit margin = 4.5%, assets turnover = 2.2 times, equity multiplier = 2.7 times then return on equity will be
Profit margin = 4.5%, assets turnover = 2.2 times, equity multiplier = 2.7 times then return on equity will be Correct Answer 26.73%
Return on Equity (ROE) = Net Profit Margin x Asset Turnover Ratio x Equity Multiplier.= 4.5% x 2.2 x 2.7
= 26.73%
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Feb 20, 2025