Answered: A firm has a return on equity of 18…

A firm has a return on equity of 18 percent. The total asset turnover is 1.6 and the profit margin is 5 percent. The total equity is $4,200. What is the amount of the net income?

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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A firm has a return on equity of 18 percent. The total
asset turnover is 1.6 and the profit margin is 5 percent.
The total equity is $4,200. What is the amount of the net
income?
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