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Manufacturer a Has a Profit Margin of 2

Question 91

Multiple Choice

Manufacturer A has a profit margin of 2.0%,an asset turnover of 1.7,and an equity multiplier of 4.9. Manufacturer B has a profit margin of 2.3%,an asset turnover of 1.1,and an equity multiplier of 4.7.
How much asset turnover should manufacturer B have to match manufacturer A's ROE?


A) 1.54
B) 3.00
C) 3.09
D) 4.77
E) 1.10

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