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cricket20 [7]
3 years ago
12

If Roten Rooters, Inc., has an equity multiplier of 1.63, total asset turnover of 2.50, and a profit margin of 4.3 percent, what

is its ROE? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.).
ROE _________ ?? %
Business
1 answer:
skelet666 [1.2K]3 years ago
5 0

Answer: 17.52%

Explanation:

Equity Multiplier = 1.63

Total asset turnover = 2.50

Profit margin = 4.3%

Rate of Return = Equity Multiplier × Asset turnover × Profit margin

= 1.63 × 2.50 × 4.3%

= 1.63 × 2.50 × 0.043

= 0.175225

= 17.52% approximately

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