Assume jPhone, Inc., has an equity multiplier of 1.38, total asset turnover of 1.60, and a...

Question

Question

Assume jPhone, Inc., has an equity multiplier of 1.38, total asset turnover of 1.60, and a profit margin of 10 percent.

Required:
What is its ROE? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

ROE

%

Answer 1

Answer #1

ROE=profit margin* total asset turnover* equity multiplier

=10*1.6*1.38

which is equal to

=22.08

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Answer 2

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