A Firm Has ROE of 5

question 16

Multiple Choice

A firm has ROE of 5.5% and an asset turnover ratio of 1.2.If the firm has 10 dollars in assets per dollar of equity,what is the firm's net profit margin?

• A)1.2%
• B)0.66%
• C)5.5%
• D)6.6%
• E)0.46%

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