Manufacturer a Has a Profit Margin of 2

question 91

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?

• A)1.54
• B)3.00
• C)3.09
• D)4.77
• E)1.10

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Definitions:

GAF Scale

The Global Assessment of Functioning scale, a numeric scale (0 through 100) used by mental health clinicians and physicians to rate subjectively the social, occupational, and psychological functioning of adults.

Cognitive Functioning

The mental processes involved in obtaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.

Overall Functioning

An individual's general level of performance in various areas of life, often considered in psychological and medical contexts to assess health or disability.

Personality Disorders

Mental disorders characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts and deviating from those accepted by the individual's culture.