Question

Rogers, Incorporated, has an equity multiplier of 1.41, total asset turnover of 1.7, and a profit margin of 8 percent. What is the company's return on equity (ROE)?

Answer 1

The return on equity (ROE) for Rogers, Incorporated is approximately 19.36%.

Step-by-step explanation:

To calculate the return on equity (ROE) for Rogers, Incorporated, we can use the formula:

ROE = Profit Margin x Total Asset Turnover x Equity Multiplier

Given that the profit margin is 8%, the total asset turnover is 1.7, and the equity multiplier is 1.41, we can substitute these values into the formula:

ROE = 0.08 x 1.7 x 1.41

ROE = 0.19356, or approximately 19.36%

Therefore, the company's return on equity is 19.36%.