A Firm Has a Profit Margin of 12%; Total Asset

question 99

Multiple Choice

A firm has a profit margin of 12%; total asset turnover of .55 and an equity multiplier of 2.2. What is the firm's ROA and ROE?

• A) ROA = 6.6%; ROE = 14.52%
• B) ROA = 7.2%; ROE = 15.84%
• C) ROA = 9.5%; ROE = 20.9%
• D) ROA = 8.1%; ROE = 17.82%

Identify the primary components of personal income in the United States.

Understand the structure and significance of transfer programs at the federal level.

Recognize the role and forms of property income.

Comprehend the concept and implications of the Lorenz curve and Gini coefficient in measuring income distribution.

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Definitions:

Locus Of Control

A mental construct denoting how much people think they possess the power to influence occurrences that impact their existence.

Optimist

An individual who tends to be hopeful and confident about the future or the success of something.

Pessimist

A person who tends to see the worst aspect of things or believe that the worst will happen; a lack of hope or confidence in the future.

Avoidance/Avoidance Conflict

A psychological conflict that arises when an individual must choose between two unattractive options or outcomes.