Answered: A division of Wheeler Co. reported ROI…

A division of Wheeler Co. reported ROI of 20%. If the division's asset turnover was 5, the profit margin must have been: A. 100% B. 25% C. 4% D. 2%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

100%

A division of Wheeler Co. reported ROI of 20%. If the division's asset turnover was 5, the profit margin must have been:

A. 100%

B. 25%

C. 4%

D. 2%

Formula Formula ROI (%) = Net Income Principal Amount × 100

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