What is the profit margin-determine the equity ratio

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Reference no: EM131014778

After reviewing the firm’s financial statements, it was determined that the firm’s ROE was 15%. The debt ratio is 30%, and the total asset turnover TAT, is 2.4 times.

What is the profit margin? Follow the steps below.

First you must determine the equity ratio ______%, and once you know the equity ratio, use it to find the Equity Multiplier, EM=_______.

Now use the EM to find ROA. ROA=_______% Now you can calculate the profit margin. PM=_______%

Reference no: EM131014778

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