A company has the following financial characteristics: • Return on Equity (ROE) = 14.7% • . Debt-Equity Ratio = 0.52 (52%) Capital Intensity Ratio = 1.15 • Current Liabilities = $210,000 Calculate the Profit Margin: A) 8.96% B) 10.42% C) 11.76% D) 13.24% E) 9.85%

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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Ans ?? Financial accounting

A company has the following financial characteristics:
•
Return on Equity (ROE) = 14.7%
•
.
Debt-Equity Ratio = 0.52 (52%)
Capital Intensity Ratio = 1.15
•
Current Liabilities = $210,000
Calculate the Profit Margin:
A) 8.96%
B) 10.42%
C) 11.76%
D) 13.24%
E) 9.85%
Transcribed Image Text:A company has the following financial characteristics: • Return on Equity (ROE) = 14.7% • . Debt-Equity Ratio = 0.52 (52%) Capital Intensity Ratio = 1.15 • Current Liabilities = $210,000 Calculate the Profit Margin: A) 8.96% B) 10.42% C) 11.76% D) 13.24% E) 9.85%
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