If Net Profit Margin Is 5

question 3

Multiple Choice

If net profit margin is 5.0 percent,rate of asset turnover is 4.0x,and financial leverage is 2.0x,then return on net worth is:

• A) 8.0 percent.
• B) 10.0 percent.
• C) 20.0 percent.
• D) 40.0 percent.
• E) 80.0 percent.

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Definitions:

Federal Tax Revenue

Revenue the federal government receives from taxes, including income tax, corporate tax, and other taxes.

Personal Income Tax

A tax levied by the government on individuals’ income, including wages, salaries, and investment returns.

Defense Spending

Spending by the government on military and defense activities, covering wages, machinery, research, and innovation.

Federal Government Spending

Expenditures by the national government on goods, services, and programs, including defense, education, and social security.