Fern Company Has a Target Rate of Return of 19

question 52

Multiple Choice

Fern Company has a target rate of return of 19%, an ROI of 31%, and capital turnover of 2.9. The sales margin for Fern Company may be closest to

• A)7%.
• B)11%.
• C)90%.
• D)55%.

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Definitions:

Rewards

Benefits, compensations, or other forms of recognition provided to individuals or groups in response to their performance or behavior.

Equity Ratio

A financial metric used to measure a company's level of indebtedness by comparing total equity to total assets.

Equity Sensitives

Individuals who prefer an equitable balance between the input they provide and the outcomes they receive in comparison to others.

Entitleds

Individuals who hold an exaggerated belief in their own importance or rights, expecting special treatment and privileges without corresponding responsibilities.