Frederico's Has a Profit Margin of 6%,a Return on Assets

Multiple Choice

Frederico's has a profit margin of 6%,a return on assets of 8%,and an equity multiplier of 1.4. What is the return on equity?

A) 6.7%
B) 8.4%
C) 11.2%
D) 14.6%
E) 19.6%