Marshall Networks, Inc

question 55

Multiple Choice

Marshall Networks, Inc. has a total asset turnover of 2.5 and a net profit margin of 3.5%. The firm has a return on equity of 17.5%. Calculate Marshall's debt ratio.

• A) 30%
• B) 40%
• C) 50%
• D) 60%

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Definitions:

Consolidated

Combined financial statements that present the assets, liabilities, and operating results of parent companies and their subsidiaries as a single entity.

Diversified

A risk management strategy that involves spreading investments across various financial instruments, industries, or other categories to reduce risk.

Responsibility Centers

These are parts or segments of a business for which individual managers are responsible, usually in terms of costs, revenues, or investment.

Cost Center

A business unit or department within an organization that does not directly generate revenue but incurs costs, used for budgeting and cost control.