Northwest Lumber Had a Profit Margin of 5

question 43

Multiple Choice

Northwest Lumber had a profit margin of 5.25%, a total assets turnover of 1.5, and an equity multiplier of 1.8.What was the firm's ROE?

• A) 12.79%
• B) 13.47%
• C) 14.18%
• D) 14.88%
• E) 15.63%

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Definitions:

Dividend Growth

The yearly percentage growth rate of a company's dividend disbursements.

Rate of Return

The profit or deficit on an investment across a designated timeframe, demonstrated as a proportion of the investment's original expense.

Rate of Return

The percentage of increase or decrease in the value of an investment over a specified period of time.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often receiving dividends before common shareholders.