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Manufacturer a Has a Profit Margin of 2

question 84

Multiple Choice

Manufacturer A has a profit margin of 2.0%,an asset turnover of 1.7 and an equity multiplier of 4.9.
Manufacturer B has a profit margin of 2.3%,an asset turnover of 1.1 and an equity multiplier of 4.7.
How much asset turnover should manufacturer B have to match manufacturer A's ROE?


Definitions:

Salts

Ionic compounds resulting from the neutralization reaction of an acid and a base, characterized by the presence of at least one metal or cation and one non-metal anion.

Sulphuric Acid

A highly corrosive strong mineral acid with the chemical formula H2SO4, used in various industrial processes.

Nitric Acid

A highly corrosive mineral acid (HNO3) used in the manufacture of fertilizers, explosives, and in various industrial processes.

PANs

Personal Area Networks (PANs) are networking technologies for interconnecting devices within a close proximity, typically within a few meters, such as computers, smartphones, and personal digital assistants.

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