Ratios: DuPont Model for Return on Equity (ROE)

14. Financial Statement Analysis / Ratios: DuPont Model for Return on Equity (ROE) / Problem 4

Problem 4

A company has a profit margin of 12%, a total asset turnover of 1.2, and an equity multiplier of 1.8. What is the company's ROE?

21.6%

25.92%

19.44%

28.8%