If the profit margin is 0.2158, asset turnover is 0.5389 and financial leverage is 1.2047, what is the return on equity?
A) 0.1401
B) 0.6492
C) 0.1163
D) 0.5389

Name: If the profit margin is 0.2158, asset turnover is 0.5389 and financial leverage is 1.2047, what is the return on equity? A) 0.1401 B) 0.6492 C) 0.1163 D) 0.5389
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Question

Quizplus · Accepted Answer

ROE = Profit Margin * Asset Turnover * Financial LeverageROE = 0.2158 * 0.5389 * 1.2047ROE = 0.1401

If the Profit Margin Is 0