Question

If Hailey, Inc., has an equity multiplier of 1.46, total asset turnover of 1.5, and a profit margin of 5.6 percent, what is its ROE?

Answer 1

12.26

Step-by-step explanation:

Calculation for what is its ROE

Using this formula

ROE = Profit margin*Total asset turnover*Equity multiplier

Let plug in the formula

ROE=5.6*1.5*1.46

ROE=12.26

Therefore the ROE will be 12.26