Northwest Lumber Had a Profit Margin of 5

question 41

Multiple Choice

Northwest Lumber had a profit margin of 5.25%,a total assets turnover of 1.5,and an equity multiplier of 1.8.What was the firm's ROE?

• A)12.79%
• B)13.47%
• C)14.18%
• D)14.88%

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Definitions:

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with elasticity greater than one indicating a high responsiveness.

Elasticity

A measure in economics of how the quantity demanded or supplied of a good changes in response to changes in price or other factors.

Considered Elastic

A description for goods or services whose demand or supply is significantly responsive to changes in price.

Unit Elastic

Describes a demand or supply scenario where a percentage change in price leads to an equal percentage change in quantity demanded or supplied.