F Hailey, Inc., has an equity multiplier of 1.6, total asset turnover of 2.2, and a profit margin of 4 percent, what is its ROE?

Question

asked Jun 15, 2022 175k views

1 Answer

Yersin · Answer 1 · 2022-06-19T15:20:59+0000

Answer:

14.08

Step-by-step explanation:

Calculation for what is its ROE

Using this formula

ROE = Profit margin*Total asset turnover*Equity multiplier

Let plug in the formula

ROE=4*2.2*1.6

ROE=14.08

Therefore the ROE will be 14.08