A company has sales of $640,000, net profit after taxes of $23,000, a total asset turnover of 2.5 and an equity multiplier of 1.67. What is the return on equity?
A) 15%
B) 9.0%
C) 8.1%
D) 4.5%
Answer: D
A company has sales of $640,000, net profit after taxes of $23,000, a total asset turnover of 2.5 and an equity multiplier of 1.67. What is the return on equity?
A) 15%
B) 9.0%
C) 8.1%
D) 4.5%
Answer: D