If Harley, Inc., has an equity multiplier of 1.35, total asset turnover of 2.15, and a...

Question

Question

If Harley, Inc., has an equity multiplier of 1.35, total asset turnover of 2.15, and a profit margin of 6.08 percent, what is its ROE?

business finance

Answer 1

Answer #1

as per Dupont analysis, the ROE can broke down into,

ROE = Net profit Margin*Asset turnover ratio*equity multiplier

= 6.08%*2.15*1.35

= 17.6472%

Answer 2

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