Retailers Inc

question 71

Multiple Choice

Retailers Inc.and Computer Corp.each have assets of R10,000 and a return on common equity equal to 15%.Retailers have twice as much debt and twice as many sales relative to Computer Corp.Retailers' net income equals R750, and its total asset turnover is equal to 3.What is Computer Corp.'s profit margin?

• A) 2.50%
• B) 5.00%
• C) 7.50%
• D) 10.00%
• E) 12.50%

---

Definitions:

Objective

A specific goal or target that an individual or organization aims to achieve, often measurable and time-bound.

Effective Communication Process

A structured manner of exchanging information that ensures the message is sent, received, and understood as intended.

Information Overload

A state of feeling overwhelmed due to the excessive amount of information available, making it difficult to make decisions or understand an issue.

Problem-solving

The process of identifying a problem, developing possible solution paths, and taking the appropriate course of action to solve it.