A Company Had a Profit Margin of 10

question 127

Multiple Choice

A company had a profit margin of 10.5% and total asset turnover of 1.84. Its return on total assets was:

• A) 5.71%
• B) 8.66%
• C) 12.34%
• D) 13.61%
• E) 19.32%

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Definitions:

Interest Rate

The cost of borrowing money expressed as a percentage of the amount borrowed, paid to the lender.

Short Run

A time period in economics during which at least one input is fixed while others can be varied to adjust the level of output.

Monetary Policy

Monetary policy involves the management of a nation's money supply and interest rates by the central bank to control inflation, stabilize currency, and achieve economic growth.

Fiscal Policy

Government policy that attempts to influence the economy through changes in government spending and taxes.