Northwest Lumber had a profit margin of 5.25%,a total assets turnover of 1.5,and an equity multiplier of 1.8.What was the firm's ROE?
A)12.79%
B)13.47%
C)14.18%
D)14.88%

Name: Northwest Lumber had a profit margin of 5.25%,a total assets turnover of 1.5,and an equity multiplier of 1.8.What was the firm's ROE? A)12.79% B)13.47% C)14.18% D)14.88%
Brand: Quizplus
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Question

Quizplus · Accepted Answer

ROE = Profit Margin x Total Asset Turnover x Equity Multiplier
ROE = 5.25% x 1.5 x 1.8
ROE = 14.18%
Therefore, the answer is (C) 14.18%.

Northwest Lumber Had a Profit Margin of 5