A Firm Has ROE of 15% and a Net Profit

question 78

Multiple Choice

A firm has ROE of 15% and a net profit margin of 4.5%.If the firm has 6.5 dollars in assets per dollar of equity,what is the firm's asset turnover ratio?

• A)0.5
• B)2
• C)1
• D)1.5
• E)2.5