A Firm Has ROE of 18

question 72

Multiple Choice

A firm has ROE of 18.5%,net profit margin of 3.2% and an asset turnover ratio of 0.7.What is the firm's equity multiplier?

• A)4.0
• B)8.3
• C)13.0
• D)4.6
• E)5.8

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Definitions:

EKG

A test that records the electrical activity of the heart, known formally as an electrocardiogram.

Cardiac Unit

A specialized hospital ward or area dedicated to patients with heart conditions, providing specific medical care and monitoring.

Generic Form

A non-branded version of a medicine, containing the same active ingredients as the brand-name version.

Medication

Substances used for medical treatment, especially for relieving or curing diseases and health conditions.