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Margin, Net income, ROE

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For the year ended December 31, 2009, Ebanks Inc., earned a ROI of 12%. Sales for the year were $96 million and average asset turnover was 2.4. Average owners equity was $32 million.

a) Calculate Ebanks Inc., margin and net income
b) Calculate EbanksInc, return on equity

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The solution explains the calculation of Margin, Net income and ROE.

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a) Calculate Ebanks Inc., margin and net income

Margin = Net Income/Sales
Asset ...

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