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%

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