Selzer Inc

question 106

Multiple Choice

Selzer Inc.sells all its merchandise on credit.It has a profit margin of 4 percent,days sales outstanding equal to 60 days,receivables of $150,000,total assets of $3 million,and a debt ratio of 0.64.What is the firm's return on equity (ROE) ?

• A) 7.1%
• B) 33.3%
• C) 3.3%
• D) 71.0%
• E) 8.1%

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