If a Firm Has an After-Tax Profit Margin of 5

question 158

Multiple Choice

If a firm has an after-tax profit margin of 5%, an asset turnover of 2.5 times, and no debt, the return on equity is:

• A) 2%
• B) 8.5%
• C) 12.5%
• D) 14.8%

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Definitions:

Brain Injury

A physical damage to the brain that can affect cognitive, physical, and emotional functions.

Stability

The state of being steady and unchanging, often used to describe emotional, financial, or structural constancy.

Adulthood

The life stage following adolescence, involving greater physical, psychological, and social maturity.

Thoughts

Mental processes in which ideas, opinions, and beliefs are formulated, often as part of reasoning and cognition.