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    paisley87's Avatar
    paisley87 Posts: 1, Reputation: 1
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    #1

    Jan 26, 2010, 03:28 PM
    $6million in sales. ROE is 12%. Total asset turnover is 3.2x and 50% financed. NI?
    $6million in sales. ROE is 12%. Total asset turnover is 3.2x and company is 50% financed. What is the Net income?
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
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    #2

    Jan 27, 2010, 06:45 AM
    Without seeing your work there's no way to tell where--or if--you got off track. Check out the forum's homework help guidelines, then check back in with your work on the problem. Assistance will follow.
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
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    #3

    Jan 27, 2010, 11:50 PM

    Follow these steps:
    1. Calculate total assets using total assets turnover
    2. Divide total assets by 2 to get equity
    3. Multiply the equity with ROE and you get the answer
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