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:

Generalization

The extension of learned responses to stimuli that are similar but not identical to the conditioned stimulus in a learning process.

Spontaneous Recovery

The reappearance of a previously extinguished response after a period of time without exposure to the conditioned stimulus.

Extinction

In psychology, the process through which a conditioned response decreases in frequency and eventually disappears as a result of the withdrawal of reinforcement.

Contingency

The relationship between two events, one being contingent or a consequence of the other's occurrence.