Determine what is the return on equity

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Question 1) Reno Revolvers has an EPS of $1.60, a free cash flow per share of $4.20, and a price/free cash flow ratio of 8.0. What is its P/E ratio? Do not round intermediate calculations. Round answer to two decimal places.

Question 2) Needham Pharmaceuticals has a profit margin of 4% and an equity multiplier of 1.5. Its sales are $130 million and it has total assets of $60 million. What is its return on equity (ROE)? Do not round intermediate calculations. Round answer to two decimal places.

Reference no: EM132649798

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