[harmoni5858]

A firm has a profit margin of 2 percent and an equity multiplier of 2.0. Its sales are 100 million, and it has total assets of 50 million what is its roe

[ArcSine]

ROE is the ratio of Net Income to Equity.

From the given profit margin and sales, you can determine Net Income. From the equity multiplier and total assets you can derive Equity.

Back to you for the wrap up.