Computer Geeks has sales of $521,000, a profit margin of 14.8%, a total asset turnover rate of 2.16, and an equity multiplier of 1.3. What is the return on equity? a. 8.91% b. 18.28% c. 32.11% d. 41.56%

Computer Geeks has sales of $521,000, a profit margin of 14.8%, a total asset turnover rate of 2.16, and an equity multiplier of 1.3. What is the return on equity? a. 8.91% b. 18.28% c. 32.11% d. 41.56%

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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Question

4. Computer Geeks has sales of $521,000, a profit margin of 14.8%, a total asset turnover rate of 2.16, and an equity multiplier of 1.3. What is the return on equity?

a. 8.91%

b. 18.28%

c. 32.11%

d. 41.56% 5

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