A company has a Total Asset Turnover (TATO) of 1.6x, a Net Profit Margin (nPM) of 5%, and a Debt Ratio (DR) of 40%. Their Return on Assets (ROA) will be %. Equity (ROE) will be A. 6%, 10% % and their Return on B. 8%, 12% C. 8%, 13.33% D. 5%, 8.33%
A company has a Total Asset Turnover (TATO) of 1.6x, a Net Profit Margin (nPM) of 5%, and a Debt Ratio (DR) of 40%. Their Return on Assets (ROA) will be %. Equity (ROE) will be A. 6%, 10% % and their Return on B. 8%, 12% C. 8%, 13.33% D. 5%, 8.33%
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 6P
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Transcribed Image Text:A company has a Total Asset Turnover (TATO) of 1.6x, a Net Profit Margin (nPM) of 5%, and a
Debt Ratio (DR) of 40%. Their Return on Assets (ROA) will be
%.
Equity (ROE) will be
A. 6%, 10%
% and their Return on
B. 8%, 12%
C. 8%, 13.33%
D. 5%, 8.33%
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