What is the financial leverage of the company

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A company generates ROA of 3.5% and has sales of $3,400, employing average assets of $5,000 which are funded with 25% liabilities.

Question 1: What is the ROE of the company? Answers should be numbers only rounded to the nearest tenth of a decimal. ROE is a percentage, thus 0.107 would be recorded as 10.7 (without the % sign).

Question 2: What is the financial leverage of the company? Answers should be numbers only, rounded to the nearest tenth of a decimal (i.e., 2.76 would be 2.8).

Reference no: EM132579384

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