RY Corporation had a profit margin of 6.25%, a total assets turnover of 1.5, and an equity multiplier of 1.8.  What was the firm’s return on equity?

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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RY Corporation had a profit margin of 6.25%, a total assets turnover of 1.5, and an equity multiplier of 1.8.  What was the firm’s return on equity?

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