A Corporation Has a Total Asset Turnover of 2 Times

question 7

Multiple Choice

A corporation has a total asset turnover of 2 times, ROA of 12 percent and EM of 1.17. What is this firm's profit margin and debt ratio?

• A) profit margin: 2 percent; debt ratio: 19.45 percent
• B) profit margin: 3 percent; debt ratio: 31.81 percent
• C) profit margin: 4 percent; debt ratio: 12.94 percent
• D) profit margin: 6 percent; debt ratio: 14.53 percent

---

Definitions:

Redundant Words

Unnecessary words in a sentence or phrase that do not add any significant meaning or value to the message being conveyed.

Clear Writing

The practice of writing in a simple, understandable, and straightforward manner.

Cluttering Phrases

Unnecessary words or phrases that make communication less effective by adding distraction or confusion.

Readability

The ease with which a reader can understand or comprehend a text, influenced by factors such as sentence structure, vocabulary, and layout.