A company has a financial leverage ratio of 2.0, net profit margin of 3%, fixed asset turnover of 10.0, total assset turnover of 4.0, and a debt to equity ratio of 1.0. What is ROE? |
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Return on equity or ROE= (Net profit margin)*(Total asset
turnover)*(Financial leverage)
=(3%)*(4)*(2)=24.00%
So, the ROE is 24.00%
A company has a financial leverage ratio of 2.0, net profit margin of 3%, fixed asset...
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