A Firm Has an Asset Turnover Ratio of 1

question 92

Multiple Choice

A firm has an asset turnover ratio of 1.6 and a net profit margin of 1.3%.If the firm has 5 dollars in assets per dollar of equity,what is the firm's ROE?

• A)4.1%
• B)6.5%
• C)6.2%
• D)10.4%
• E)1.3%