GTYOC Aviation had a profit margin of 10.00%, a total assets turnover of 1.4, and an...

Question

Question

GTYOC Aviation had a profit margin of 10.00%, a total assets turnover of 1.4, and an equity multiplier of 2.8. What was the firm's ROE?

business finance

Answer 1

Answer #1

ROE=Profit margin*Total asset turnover*Equity multiplier

=(0.1*1.4*2.8)

which is equal to

=39.2%

Answer 2

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