If wilkinson, inc., has an equity multiplier of 1.61, total asset turnover of 2.3, and a profit margin of 4.1 percent, what is its roe?

The answer is "0.1518, or 15.18%".

equity multiplier = 1.61

total asset turnover = 2.3

profit margin of 4.1% = 0.041

Return of equity (ROE) = profit margin x total asset turnover x equity multiplier

ROE = (.041) (2.3) (1.61)

= 0.1518, or 15.18%