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Manufacturer a Has a Profit Margin of 2

Question 56

Multiple Choice

Manufacturer A has a profit margin of 2.2%, an asset turnover of 1.7 and an equity multiplier of 5.0. Manufacturer B has a profit margin of 2.5%, an asset turnover of 1.2 and an equity multiplier of 4.7.
How much asset turnover should manufacturer B have to match manufacturer A's ROE?


A) 1.59%
B) 3.18%
C) 2.23%
D) 1.27%

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