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8 May, 17:02

If wilkinson, inc., has an equity multiplier of 1.61, total asset turnover of 2.3, and a profit margin of 4.1 percent, what is its roe?

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  1. 8 May, 18:54
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    The answer is "0.1518, or 15.18%".

    equity multiplier = 1.61

    total asset turnover = 2.3

    profit margin of 4.1% = 0.041

    Return of equity (ROE) = profit margin x total asset turnover x equity multiplier

    ROE = (.041) (2.3) (1.61)

    = 0.1518, or 15.18%
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