XYZ Corphas an Operating Profit Margin of 7%,a Debt Burden of of .8,and

question 57

Multiple Choice

XYZ Corp.has an operating profit margin of 7%,a debt burden of .8,and has financed two-thirds of its assets through equity.What asset turnover ratio is necessary to achieve an ROE of 18%?

• A) 1.26
• B) 1.61
• C) 2.14
• D) 4.02

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