Profit Margin
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My Company has determined that its return on equity is 15 percent. Management is interested in the various components that went into this calculation. You are given the following information: total debt/total assets = 0.35 and total assets turnover = 2.8. Showing the computation what is the profit margin?
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Solution Summary
The solution explains the calculation of profit margin given various other ratios.
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Let us put the various figures
ROE=Net Income/Total Equity=15%
Total Debt/Total Assets=0.35
Asset Turnover=Sales/Assets=2.8
Total ...
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