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If Roten Rooters, Inc., has an equity multiplier of 1.49, total asset turnover of 1.50, and a profit margin of 5.9 percent, what is its ROE? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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eooyibo123

Answer:

ROI= 13.19%

Explanation:

Return on investment is the percentage of an investment that is realised as profit in one year. It is usually a ratio between net profit and total investment. ROI is used to estimate efficiency of different investments.

Using the following formula

ROI = Equity multiplier * Total Asset Turnover * Profit Margin

ROI= 1.49* 1.50* 0.059

ROI= 0.131865

ROI= 13.19%

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