XYZ Corphas an Operating Profit Margin of 7%,a Debt Burden of of .8,and

Multiple Choice

XYZ Corp.has an operating profit margin of 7%,a debt burden of .8,and has financed two-thirds of its assets through equity.What asset turnover ratio is necessary to achieve an ROE of 18%?

A) 1.26
B) 1.61
C) 2.14
D) 4.02