A Firm Has a Net Profit/pretax Profit Ratio of 0

Multiple Choice

A firm has a net profit/pretax profit ratio of 0.625, a leverage ratio of 1.2, a pretax profit/EBIT of 0.9, an ROE of 17.82%, a current ratio of 8, and a return on sales ratio of 8%.The firm's asset turnover is

A) 0.3.
B) 1.3.
C) 2.3.
D) 3.3. 17.82% = 0.625 *0.9 * 8% * asset turnover * 1.2; asset turnover = 3.3.