If Wilkinson, Inc., has an equity multiplier of 1.47, total asset turnover of 1.6, and a...

Question

Question

If Wilkinson, Inc., has an equity multiplier of 1.47, total asset turnover of 1.6, and a profit margin of 5.7 percent, what is its ROE?

business finance

Answer 1

Answer #1

DuPont Identity

ROE = Profit Margin (Profit/Sales) * Total Asset Turnover (Sales/Assets) * Equity Multiplier (Assets/Equity)

5.7*1.6*1.47=13.41%

Thanks

Answer 2

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