XYZ Corphas an Operating Profit Margin of 7%,a Debt Burden of of .8,and

question 57

Multiple Choice

XYZ Corp.has an operating profit margin of 7%,a debt burden of .8,and has financed two-thirds of its assets through equity.What asset turnover ratio is necessary to achieve an ROE of 18%?

• A) 1.26
• B) 1.61
• C) 2.14
• D) 4.02

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Definitions:

R&D Work

Research and Development activities aimed at developing new products, processes, or services and improving existing ones.

Basic Research

Research conducted to increase fundamental knowledge and understanding, without specific immediate commercial applications.

Percentage

A portion or division of a whole expressed as a number out of 100.