Which of the Following Will Allow Your Firm to Achieve

question 36

Multiple Choice

Which of the following will allow your firm to achieve its targeted 16 percent ROA with an asset turnover of 2.5?

• A)A leverage ratio of .0667
• B)A P/E ratio of 14
• C)A profit margin of 15 percent
• D)A profit margin of 6.4 percent ROE = Profit margin x Asset turnover
• )16 = Profit margin x 2.50

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Definitions:

Sacagawea

A Lemhi Shoshone woman who assisted the Lewis and Clark Expedition in achieving their chartered mission objectives by exploring the Louisiana Territory.

Tenskwatawa

A Native American leader of the Shawnee tribe, known as the Prophet, who played a pivotal role in indigenous resistance to European settlement in the early 19th century.

Tecumseh

A Native American leader of the Shawnee who became a significant military and political figure in the early 19th century. He sought to unify Indigenous tribes to resist the expansion of the United States into their territories.

Industrial Development

The process of establishing and growing industries within a country or region, often leading to economic growth and societal changes.