Ask Question
26 May, 10:20

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?

+2
Answers (1)
  1. 26 May, 10:32
    0
    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%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “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? ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers