Ratios: DuPont Model for Return on Equity (ROE)

14. Financial Statement Analysis / Ratios: DuPont Model for Return on Equity (ROE) / Problem 5

Problem 5

A company has a profit margin of 10%, a total asset turnover of 2, and an equity multiplier of 1.5. What is the company's ROE?

15%

20%

30%

25%