Multiple Choice
A firm has a (net profit/pretax profit) ratio of 0.6,a leverage ratio of 2,a (pretax profit/EBIT) of 0.6,an asset turnover ratio of 2.5,a current ratio of 1.5,and a return on sales ratio of 4%.The firm's ROE is ________.
A) 2.9%
B) 4.3%
C) 7.2%
D) 15.0%
E) none of these
Correct Answer:
Verified
Correct Answer:
Verified
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