Samsung has sales of $51,000 and a net income of $18,000. Total assets are $48,000 and total equity is $29,000. The consumer electronics industry as a whole has the following characteristics: Ratio Value Profit margin 0.137 Total asset turnover 0.941 Equity multiplier 1.8 Return on equity 0.232

Part 1

What is Samsung's profit margin?

Part 2

What is Samsung's total asset turnover?

Part 3

What is Samsung's equity multiplier?

Part 4

What is Samsung's return on equity?

Which is the main factor explaining why Samsung has a greater ROE than the industry?

Higher equity multiplier

Higher total asset turnover

Higher profit margin