A Firm Has an ROE of 14% and a Debt

question 71

Multiple Choice

A firm has an ROE of 14% and a debt ratio of 40%. If the total asset turnover is 3.4, what is the firm's profit margin?

• A) 2.47%
• B) 3.86%
• C) 4.29%
• D) 5.67%

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Definitions:

Transactional Leaders

Leaders who focus on the routine transactions between the organization and its members, emphasizing clear structures, rewards for performance, and penalties for non-performance.

Expectancy Theory

A motivational theory suggesting that an individual's motivation is influenced by their belief in the effectiveness of their efforts, the value of the rewards for success, and the likelihood that their efforts will lead to expected outcomes.

Goal Setting

The process of identifying specific, measurable, achievable, relevant, and time-bound objectives.

Implicit Leadership

Refers to the concept that people have inherent beliefs and expectations about the attributes and behaviors that characterize effective leaders.