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A company has a net profit margin of 5% on sales of $50 million. It has a book value of equity of $40 million. What

A company has a net profit margin of

5%

on sales of

$50

million. It has a book value of equity of

$40

million. What is its Return on

E

(ROE)?\

5.25%

\

5.75%

\

5.95%

\

6.25%

\

6.50%
image text in transcribed
A company has a net profit margin of 5% on sales of $50 million. It has a book value of equity of $40 million. What is its Return on (ROE)? 5.25% 5.75% 5.95% 6.25% 6.50%

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