Last year ABC Corp. had sales of $525,000 and a net income of $12,600, and its year-end assets were $100,000. The firm's total-liabilities-to-total-assets ratio was 50.00%. Based on the DuPont equation, what was ABC's ROE? Show your answer in this format: 12.34%
total-liabilities-to-total-assets ratio=Total liabilities/Total asset
Total liabilities=(100,000*50%)=$50,000
Total assets=Total liabilities+Total equity
Total equity=100,000-50,000=$50,000
Profit margin=Net income/Sales
=(12600/525,000)=0.024
Total asset turnover=Sales/Total assets
=(525,000/100,000)=5.25
Equity multiplier=Total assets/Total equity
=100,000/50,000=2
ROE=Profit margin*Total asset turnover*Equity multiplier
=0.024*5.25*2
=25.2%
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