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Company x has a profit margin of 4% total assets turnover of 2.0, and total debt...

Company x has a profit margin of 4% total assets turnover of 2.0, and total debt to total assets ratio of 50% what is companies ROE ( Enter your answer rounded to 4 decimal places).

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Answer #1
Profit Margin (Profit/Sales) 4.00%
Total Asset Turnover (Sales/Assets)                      2.00
Equity Multiplier (Assets/Equity)                      2.00
Return on equity (ROE) 16.0000% 4%×2×2
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