The Blue Lantern Has a Return on Equity of 17

Multiple Choice

The Blue Lantern has a return on equity of 17.8 percent, an equity multiplier of 1.9, and a total asset turnover of 1.45. What is the profit margin?

A) 2.76 percent
B) 3.57 percent
C) 4.90 percent
D) 5.28 percent
E) 6.46 percent