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

question 45

Multiple Choice

A firm has a (net profit/pretax profit) ratio of 0.6,a leverage ratio of 2,a (pretax profit/EBIT) of 0.6,an asset turnover ratio of 2.5,a current ratio of 1.5,and a return on sales ratio of 4%.The firm's ROE is ________.

• A) 2.9%
• B) 4.3%
• C) 7.2%
• D) 15.0%
• E) none of these

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Definitions:

Behavior Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning techniques.

Drug Addiction

A chronic disease characterized by compulsive, or uncontrollable, drug seeking and use despite harmful consequences and changes in the brain.

Overgeneralization

The cognitive process in which a rule or pattern is applied too broadly, beyond its appropriate use.

Rational Emotive Behavior Therapy

Rational Emotive Behavior Therapy is a type of psychotherapy that helps individuals identify self-defeating thoughts and feelings, challenge the rationality of those feelings, and replace them with healthier, more productive beliefs.