​A Company's Profit Margin Is 15

question 82

Multiple Choice

​A company's profit margin is 15.5%, its asset turnover 0.72, and its financial leverage is 3.25.Determine the company's return on shareholders' equity.

• A) ​42.5%
• B) ​36.3%
• C) ​51.7%
• D) ​28.4%

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Definitions:

Initial Value

The starting monetary or numerical value of an investment, account, or another financial instrument before any earnings or losses.

Reduction

The act of making something lesser in size, amount, or degree.

Equals

Signifies that two quantities or expressions have the same value.

Final Value

Refers to the value of an investment or payment at the end of a specified period, accounting for interest or growth.