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Return on assets = 6 7 and equity multiplier = 2...

This question belongs to Commerce Financial Management
Financial Management
?

Return on assets = 6.7% and equity multiplier = 2.5% then return on equity will be

Answer & Solution
Correct Answer: Option A
Return on equity = Return on assets × Equity multiplier
= 6.7% × 2.5% = 16.75%
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