Manufacturer a Has a Profit Margin of 2

question 56

Multiple Choice

Manufacturer A has a profit margin of 2.2%, an asset turnover of 1.7 and an equity multiplier of 5.0. Manufacturer B has a profit margin of 2.5%, an asset turnover of 1.2 and an equity multiplier of 4.7.
How much asset turnover should manufacturer B have to match manufacturer A's ROE?

• A) 1.59%
• B) 3.18%
• C) 2.23%
• D) 1.27%

---

Definitions:

Examples

Specific instances or cases used to illustrate or explain a topic, principle, or process.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment, involving clear and reasoned thinking.

Metacognition

The awareness and understanding of one's own thought processes, often referred to as "thinking about thinking."

Multimodal Learner

An individual who uses several different modes or approaches for learning and absorbing information.