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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