Manufacturer a Has a Profit Margin of 2

question 30

Multiple Choice

Manufacturer A has a profit margin of 2.0%, an asset turnover of 1.7 and an equity multiplier of 4.9. Manufacturer B has a profit margin of 2.3%, an asset turnover of 1.1 and an equity multiplier of 4.7. How much asset turnover should manufacturer B have to match manufacturer A's ROE?

• A) 1.54%
• B) 4.77%
• C) 3.00%
• D) 3.09%

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Definitions:

Pervasive Developmental Disorder

A category of developmental disorders that involve delays in the development of many basic skills, often replaced by the term Autism Spectrum Disorder.

Tay-Sachs Disease

A genetic disorder that destroys nerve cells in the brain and spinal cord.

Developmental Disabilities

A diverse group of conditions due to an impairment in physical, learning, language, or behavior areas that begin during the developmental period.

Behaviour Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning and reinforcement.