Question
Asked Dec 7, 2019
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A firm has a profit margin of 2% and an equity multiplier of 2.0. Its
sales are $100 million, and it has total assets of $50 million. What is its ROE?

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Expert Answer

Step 1

Hence, Total asset turnover is 2. It is obtained by di...

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Sales Total Asset Turmover = Total Assets $100 million $50 million = 2

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