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RBC, Inc., has sales of $10,000 and $8000 in Net Fixed Asset and $1000 in current assets , debt/equity ratio of 1.25 and a$ 750

RBC, Inc., has sales of $10,000 and $8000 in Net Fixed Asset and $1000 in current assets , debt/equity ratio of 1.25 and a$ 750 in profits. Calculate Return on Equity using Dupont identity

ROE= Profit margin* Total Asset Turnover* Equity Multiplier

A) 9.39%

B) 18.75%

C) 21%

D) 12.03%

E) 93.75%

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