Answer:
18.01
Explanation:
The computation of return on equity is shown below:-
Return on equity = Profit margin × Asset turnover × Equity multiplier
= 10.50 × 1.33 × 1.29
= 0.105 × 1.33 × 1.29
= 0.1801485
or
= 18.01
Therefore for computing the return on equity we simply applied the above formula i.e by multiplying the profit margin with the asset turnover and the equity multiplier
