A Firm Has ROE of 15% and a Net Profit

question 78

Multiple Choice

A firm has ROE of 15% and a net profit margin of 4.5%.If the firm has 6.5 dollars in assets per dollar of equity,what is the firm's asset turnover ratio?

• A)0.5
• B)2
• C)1
• D)1.5
• E)2.5

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Definitions:

All-or-none

A principle that states certain processes, like nerve impulse conduction, occur fully or not at all.

Action Potential

A temporary reversal of the electrical polarization of the membrane of a nerve cell, allowing it to transmit an impulse.

Synaptic Gap

The tiny space between neurons through which neurotransmitters move to carry signals from one neuron to the next.

Chemical Diffusion

The process by which molecules move from an area of higher concentration to one of lower concentration, driven by random particle movements.