A company has the following items for the fiscal year 2020: Revenue = 10 million EBIT = 4 million Net income = 2 million Total Equity = 15 million Total Assets = 30 million Calculate the company’s net profit margin, asset turnover, equity multiplier and ROE

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter2: Financial Statements, Cash Flow,and Taxes
Section: Chapter Questions
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  1. A company has the following items for the fiscal year 2020:
  • Revenue = 10 million
  • EBIT = 4 million
  • Net income = 2 million
  • Total Equity = 15 million
  • Total Assets = 30 million

Calculate the company’s net profit margin, asset turnover, equity multiplier and ROE

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