Question
Computing Return on Equity The following information is provided for a company for the year ended December 31, 2020. Profit margin (Net income/Sales) 11.41% Asset
Computing Return on Equity
The following information is provided for a company for the year ended December 31, 2020.
| Profit margin (Net income/Sales) | 11.41% |
| Asset turnover (Sales/Average total assets) | 1.06 |
| Financial leverage (Average total assets/Average stockholders equity) | 1.92 |
Using DuPont analysis, calculate the return on equity, rounding the answer to two digits after the decimal; for example, enter 1.42 for 1.424, or 1.43 for 1.425.
| Return on equity |
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Financial Accounting A Valuation Emphasis
Authors: John S. Hughes, Frances L. Ayres, Robert E. Hoskin
1st Edition
0471203599, 978-0471203599
