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    cobrakidd03's Avatar
    cobrakidd03 Posts: 1, Reputation: 1
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    #1

    Jan 7, 2009, 07:02 PM
    Calculate margin, net income and ROE
    Here's my question... for the year ending December 31, 2009 Ebanks Inc, earned an ROI of 12%. Sales for the year $96 million, and average asset turnover was 2.4 Average owners' equity was $32 million.

    Calculate Ebanks, Inc margin and net income
    Calculate Ebanks, Inc's return on equity
    yo no se's Avatar
    yo no se Posts: 1, Reputation: 1
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    #2

    Jan 12, 2010, 08:14 PM

    Funny, I am looking for help with this same problem. Any luck with how to arrive at the answer?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #3

    Jan 13, 2010, 12:10 AM

    We'd appreciate it if you start your own thread for your own post instead of hijacking another one.

    These types of problems can be solved by writing out the extended ROI equation, and separately the two individual parts of it (profit margin and turnover). Then insert everything given, including the answer to them. Then you work your way backwards to whatever is missing.

    e.g. you know that ROI is 12%. So margin x turnover = .12. Etc. filling in what you have and working towards what you don't have.
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