If jphone, inc., has an equity multiplier of 1.65, total asset turnover of 1.8, and a profit margin of 6 percent, what is its roe

These figures make up what is known as the DuPont return on equity model. it is important to remember that the equity multiplier = Assets / shareholder equity, total asset turnover = revenue / assets, and net profit margin = net income / revenue. The calculation is (0.06) * (1.8) * (1.65) = 17.82%

The answer is "0.1782 or 17.82%".

equity multiplier = 1.65

total asset turnover = 1.8

profit margin = 6% = 6/100 = 0.06

ROE = profit margin x total asset turnover x equity multiplier

ROE = 0.06 x 1.8 x 1.65 = 0.1782

= 0.1782 or 17.82%