A firm generates sales of $855,000 while reporting costs of goods sold as $546,250, interest paid...

 

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A firm generates sales of $855,000 while reporting costs of goods sold as $546,250, interest paid of $17,500, depreciation of $137,500, and total assets of $890,000. The firm generates an equity multiplier of 2.00 while its tax rate is 21 percent. Given the information, what is the firm's return on equity? A firm generates sales of $855,000 while reporting costs of goods sold as $546,250, interest paid of $17,500, depreciation of $137,500, and total assets of $890,000. The firm generates an equity multiplier of 2.00 while its tax rate is 21 percent. Given the information, what is the firm's return on equity?

Answer rating: 100% (QA)

To calculate the firms return on equity ROE we need to use the DuPont formula which is ROE Net Profi... View the full answer