Midget Co Has a Profit Margin on Sales of 4% and and a ROE

question 3

Multiple Choice

Midget Co. has a profit margin on sales of 4% and a ROE of 18%. If Midget's debt-to-equity ratio is .8, what is the total asset turnover ratio?

• A) 2.500.
• B) 5.625.
• C) 2.000.
• D) 10.125.

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Definitions:

Spirometer

A device used to measure the volume of air inhaled and exhaled by the lungs.

Lung Volume

The total volume of air that the lungs can hold, varying with different phases of the respiratory cycle such as inhalation and exhalation.

Rhinoscopy

The examination of the nasal passages and the interior of the nose using a rhinoscope.

Nasal Passages

The channels in the nose through which air enters the body and is warmed and humidified before reaching the lungs.