College

We appreciate your visit to If Roten Rooters Inc has an equity multiplier of 1 37 a total asset turnover of 1 37 and a profit margin of 10 50. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!

If Roten Rooters, Inc., has an equity multiplier of 1.37, a total asset turnover of 1.37, and a profit margin of 10.50 percent, what is its ROE (Return on Equity)?

A. 5.32%
B. 19.71%
C. 17.74%
D. 18.92%
E. 21.68%

Answer :

The Return on Equity (ROE) is 18.92% in this case. Return on equity (ROE) is a measure of a company's profitability that shows how much profit the company generates with the money that shareholders have invested.

To calculate ROE, you need to know the company's net income, total equity and total assets. In this scenario, Roten Rooters, Inc. equity multiplier of 1.37, total asset turnover of 1.37 and a profit margin of 10.50 percent. Using this information, we can calculate a company's ROE by dividing the company's net income by its total equity.

ROE = Profit Margin x Total Asset Turnover x Equity Multiplier

ROE = 10.50% x 1.37 x 1.37

ROE = 18.92%

To know more about ROE click here

https://brainly.com/question/27821130

#SPJ4

Thanks for taking the time to read If Roten Rooters Inc has an equity multiplier of 1 37 a total asset turnover of 1 37 and a profit margin of 10 50. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!

Rewritten by : Barada