Precision Aviation had a profit margin of 6.25%,a total assets turnover of 1.5,and an equity multiplier of 1.8.What was the firm's ROE?
A)15.23%
B)16.03%
C)16.88%
D)17.72%
E)18.60%

Name: Precision Aviation had a profit margin of 6.25%,a total assets turnover of 1.5,and an equity multiplier of 1.8.What was the firm's ROE? A)15.23% B)16.03% C)16.88% D)17.72% E)18.60%
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Question

Quizplus · Accepted Answer

ROE = Profit Margin x Total Assets Turnover x Equity Multiplier

ROE = 0.0625 x 1.5 x 1.8

ROE = 0.16875 or 16.88%

Precision Aviation Had a Profit Margin of 6