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    Return on Assetss

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    I am having difficulty with this problem.
    You have the following data:
    return on equity = 15%
    earnings before taxes = $30,000
    total asset turnover = .80
    profit margin = 4.5%
    tax rate = 35%
    What is the return on assets?

    © BrainMass Inc. brainmass.com June 3, 2020, 8:24 pm ad1c9bdddf
    https://brainmass.com/business/accounting/return-assets-problem-136491

    Solution Preview

    Profit Margin = EBT/Revenue => Revenue = 30000/0.045 = 666,666.67.
    Total asset ...

    Solution Summary

    You have the following data:
    return on equity = 15%
    earnings before taxes = $30,000
    total asset turnover = .80
    profit margin = 4.5%
    tax rate = 35%
    What is the return on assets?

    $2.19

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