A Corporation Has a Total Asset Turnover of 2 Times

question 7

Multiple Choice

A corporation has a total asset turnover of 2 times, ROA of 12 percent and EM of 1.17. What is this firm's profit margin and debt ratio?

• A) profit margin: 2 percent; debt ratio: 19.45 percent
• B) profit margin: 3 percent; debt ratio: 31.81 percent
• C) profit margin: 4 percent; debt ratio: 12.94 percent
• D) profit margin: 6 percent; debt ratio: 14.53 percent