If,for the S&P Industrials Index,the Profit Margin Was

question 117

Multiple Choice

If,for the S&P Industrials Index,the profit margin was .25 and the equity turnover ratio was 12,the ROE would be:

• A) 0.83%
• B) 0.48%
• C) 3.00%
• D) 30.00%
• E) 48.00%

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Definitions:

AASB 9

An Australian Accounting Standard Board regulation that outlines the requirements for the classification, measurement, and impairment of financial instruments.

Financial Liabilities

Obligations that require a company to pay money or deliver financial assets to another entity in the future.

Financial Guarantees Contracts

Contracts that require the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due.

Derivatives

Financial securities whose value is derived from the value of an underlying asset or benchmark.