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XYZ CorpHas a Profit Margin of 7%,a Debt Burden of

Question 105

Multiple Choice

XYZ Corp.has a 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

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