A Firm Has an ROA of 8%, Sales of $100

question 262

Multiple Choice

A firm has an ROA of 8%, sales of $100, and total assets of $71. What is its profit margin?

• A) 1.3%
• B) 4.3%
• C) 5.7%
• D) 10.7%
• E) 16.7%

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Definitions:

Dividends

The distribution of a portion of a company's earnings to its shareholders as determined by the company's board of directors.

Shareholder

An individual or entity that owns shares in a corporation, thereby holding a portion of the company's equity and potentially influencing its decisions.

Homeless Persons

Individuals who lack stable, safe, and permanent housing.