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CAS Corp reported equity of $500,000. ROE of 18%, D/E ratio of 0.6, current ratio of 1.7, quick ratio of 1.2 and total asset turnover
CAS Corp reported equity of $500,000. ROE of 18%, D/E ratio of 0.6, current ratio of 1.7, quick ratio of 1.2 and total asset turnover of 2.2. what is CAS's net profit margin?
the answer my professor is getting is 5.11% please show steps and formulas. this is urgent
this is all the info given. i was able to get it down to this: ROE=PM x tot. asset turnover x equity multiplier.
that equaling .18= pm (2.2)(1+.06)
but my answer is 0.07718696 not the 5.11% in the answer
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