A Firm Has a (Net Profit/pretax Profit Ratio)of 0

question 12

Multiple Choice

A firm has a (net profit/pretax profit ratio) of 0.625,a leverage ratio of 1.2,a (pretax profit/EBIT) of 0.9,an ROE of 17.82%,a current ratio of 8,and a return on sales ratio of 8%.The firm's asset turnover is ________.

• A) 1.3
• B) 2.3
• C) 3.3
• D) 4.3
• E) none of these

---

Definitions:

Motivation

An inferred process within a person or animal that causes movement either toward a goal or away from an unpleasant situation.

Unpleasant Situation

A scenario or event that is disagreeable, uncomfortable, or causes distress to an individual.

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, or praise.

External Rewards

Benefits or incentives provided by an external source, such as money, praise, or recognition, that motivate behavior.