What Is the Return on Assets (ROA) for a Firm

question 11

Multiple Choice

What is the return on assets (ROA) for a firm that has a debt ratio of 0.65, a return on sales of 6.5%, sales of $740,000, and a total asset turnover of 4?

• A) 26.0%
• B) 16.9%
• C) 6.5%
• D) None of the above

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Definitions:

Macroeconomics

The branch of economics dealing with the structure, performance, behavior, and decision-making of an economy as a whole, rather than individual markets.

Microeconomics

The branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources.

Margin

The difference between the selling price of a product or service and its production or acquisition costs, often expressed as a percentage of the selling price.