A firm has a return on equity of 16.2%. The debt-equity ratio is 44%, a capital intensity ratio of 1.08, a current assets of $138,000. What is the profit margin? A) 7.48% B) 15.19% C) 12.19% D) 13.69% E) 9.72%

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
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A firm has a return on equity of 16.2%. The debt-equity ratio is
44%, a capital intensity ratio of 1.08, a current assets of $138,000.
What is the profit margin?
A) 7.48%
B) 15.19%
C) 12.19%
D) 13.69%
E) 9.72%
Transcribed Image Text:A firm has a return on equity of 16.2%. The debt-equity ratio is 44%, a capital intensity ratio of 1.08, a current assets of $138,000. What is the profit margin? A) 7.48% B) 15.19% C) 12.19% D) 13.69% E) 9.72%
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