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:

Collect Like Terms

The process of simplifying mathematical expressions by combining terms with the same variables.

Collect Like Terms

In algebra, this means to combine terms that have the same variable parts into a single term.

Simplify

Refers to making something easier to understand or less complex.

Algebraic Expression

A combination of numbers, variables, and operational symbols that represents a mathematical relationship or rule.