If a Firm Has a Total Asset Turnover of 8

question 9

Multiple Choice

If a firm has a total asset turnover of 8 times and a return on total assets of 15%, its net profit margin must be

• A)1.875%
• B)1.95%
• C)2.05%
• D)2.25%

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Definitions:

Current Account

A country's transactions with the rest of the world, covering trade in goods and services, net earnings on investments, and net transfer payments.

Great Recession

A severe global economic downturn that occurred from late 2007 through mid-2009, marked by significant declines in income and employment.

Absolute Terms

Expressions or measures that are unconditional and not relative to other variables or comparisons.

GDP

Gross Domestic Product, the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.