Gremlin Media Inc

Multiple Choice

Gremlin Media Inc.has realized tremendous growth in recent years.Last year the firm realized an ROE of 41.16%.If the firm was in a 40% marginal tax bracket,had an asset turnover ratio of 2.1,a profit margin of 14%,and a leverage ratio of 2,what was the firm's retention ratio?

A) 0.70
B) 1.00
C) 0.50
D) There is not enough information to answer this question.