If,for the S&P Industrials Index,the Profit Margin Was

question 117

Multiple Choice

If,for the S&P Industrials Index,the profit margin was .25 and the equity turnover ratio was 12,the ROE would be:

• A) 0.83%
• B) 0.48%
• C) 3.00%
• D) 30.00%
• E) 48.00%

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Definitions:

Unproductive

Refers to a state or condition where output or efficiency is below the expected or required level.

Activity-based Costing

A pricing strategy that allocates expenses to goods or services according to the tasks they necessitate, striving for a more accurate distribution of costs.

Relevant Cost

A cost that should be considered when making decisions.

Avoidable Costs

Costs that can be eliminated if a particular decision is made, such as discontinuing a product line.