Question

GTYOC Aviation had a profit margin of 8.00%, a total assets turnover of 1.5, and an equity multiplier of 1.0. What was the firm's ROE?

Answer 1

12

Step-by-step explanation:

GTYCO has a profit margin of 8%

Total assets turnover is 1.5

Equity multiplier Is 1.0

Therefore the ROE can be calculated as follows

= 8×1.5×1.0

= 12

Hence the ROE is 12