a) A company has a profit margin of 8.87%, total asset turnover of 2.81, assets of $67, 000 and liabilities of $24, 000.what is ROE? b) If profit margin changes to 7.11% and sales increases by 14%. All other elements of previous problem remain same what would be the new ROE?

a) A company has a profit margin of 8.87%, total asset turnover of 2.81, assets of $67, 000 and liabilities of $24, 000.what is ROE? b) If profit margin changes to 7.11% and sales increases by 14%. All other elements of previous problem remain same what would be the new ROE?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 3DQ

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a) A company has a profit margin of 8.87%, total asset turnover of 2.81, assets of $67, 000 and liabilities of $24, 000.what is ROE?

b) If profit margin changes to 7.11% and sales increases by 14%. All other elements of previous problem remain same what would be the new ROE?

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