A firm has a ROA of 6%, sales of $80, and total assets of $100. What is its profit margin? a. 3.75% b. 4.25% c. 6.75% d. 7.50% e. 9.25%

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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Financial accounting

A firm has a ROA of 6%, sales of $80, and total assets of $100. What
is its profit margin?
a. 3.75%
b. 4.25%
c. 6.75%
d. 7.50%
e. 9.25%
Transcribed Image Text:A firm has a ROA of 6%, sales of $80, and total assets of $100. What is its profit margin? a. 3.75% b. 4.25% c. 6.75% d. 7.50% e. 9.25%
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