If a company’s net profit margin is –5%, its total asset turnover is 1.5 times, and its financial leverage ratio is 1.2 times, its return on equity is closest to:

A. –9.0%.
B. –7.5%.
C. –3.2%.

Ans: A. –9.0%.

Business

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As the sales manager of WGASA Corporation, a major West Coast wholesaler, it's up to you to set quotas for each of WGASA's territories. The veteran sales force tends to work autonomously with minimal supervision or required paperwork on activities. Also, salespeople have no opportunity to set prices or margins. With this type of situation you are most likely to use:

a. expense report quotas. b. dollar volume quotas. c. activity quotas. d. all of the above. e. none of the above.

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The most common form of ALJ opinions is:

a. final decisions b. initial decisions c. recommended decisions d. preliminary decisions

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