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

question 212

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:

Shale

A fine-grained sedimentary rock that can contain significant amounts of oil and natural gas.

Magnitude 9.0

A measure on the Richter scale indicating an extremely powerful earthquake, capable of causing widespread destruction and significant alteration of the Earth's surface.

Lava Rock

A volcanic rock formed from the cooling and solidification of molten lava.

Igneous

Pertaining to rock formed from the cooling and solidification of magma or lava, distinguished by minerals crystallized from molten material.