Return on assets = 6.7% and equity multiplier = 2.5% then return on equity will be

The correct answer is A. 16.75%.

Return on equity (ROE) is a measure of how profitable a company is relative to its equity. It is calculated by dividing net income by shareholders’ equity.

Equity multiplier is a measure of how much debt a company uses to finance its assets. It is calculated by dividing total assets by shareholders’ equity.

The formula for ROE is:

ROE = Net income / Shareholders’ equity

The formula for equity multiplier is:

Equity multiplier = Total assets / Shareholders’ equity

We are given that return on assets (ROA) = 6.7% and equity multiplier (EM) = 2.5. We can use these values to calculate ROE as follows:

ROE = ROA * EM = 6.7% * 2.5 = 16.75%

Therefore, the correct answer is A.