Computing Return on Equity The following information is provided for a company for the year ended December 31, 2020 Profit margin (Net income Sales) 11 41 Asset turnover (Sales Average total assets) 1 06 Financial leverage (Average total assets Average stockholders equity) 1 92 Using DuPont analysis, calculate the return on equity, rounding the answer to two digits after the decimal for example, enter 1 42 for 1 424, or 1 43 for 1 425 Return on equity

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Question: Computing Return on Equity The following information is provided for a company for the year ended December 31, 2020. Profit margin (Net income/Sales) 11.41% Asset

Computing Return on Equity

The following information is provided for a company for the year ended December 31, 2020.

Profit margin (Net income/Sales)	11.41%
Asset turnover (Sales/Average total assets)	1.06
Financial leverage (Average total assets/Average stockholders equity)	1.92

Using DuPont analysis, calculate the return on equity, rounding the answer to two digits after the decimal; for example, enter 1.42 for 1.424, or 1.43 for 1.425.

Return on equity

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