Question: Calculate the return on equity (ROE) given a profit margin of 4.5%, a return on assets of 6.5%, and an equity multiplier of 1.2. a.

  1. Calculate the return on equity (ROE) given a profit margin of 4.5%, a return on assets of 6.5%, and an equity multiplier of 1.2.

a. 2.4%

b. 5.4%

c. 6.5%

d. 7.8%

e. 11.5%

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