Please provide the accurate answer to this general accounting problem using valid techniques. Aster Corp. earned a return on assets (ROA) of 12% forthe current year. Its asset turnover is 2.0, and its returnon equity (ROE) is 15%.Calculate Aster's profit margin.a. 6%b. 12%c. 7.5%d. 15%

Step 1: Define Profit MarginProfit Margin is a key financial ratio that measures how much net income…

Answered: Aster Corp. earned a return on assets…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 19P

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A return on assets of 5.15% means that a company is earning: a.a $5.15 return on every $100 invested in long-term assets. b.a $5.15 return on every $100 of total assets. c.a $5.15 return on every $100 of assets minus liabilities. d.a $5.15 return on every $100 of current assets.
A return on assets of 5.15% means that a company is earning: O a. a $5.15 return on every $100 of assets minus liabilities. O b. a $5.15 return on every $100 of total assets. O c. a $5.15 return on every $100 of current assets. O d. a $5.15 return on every $100 invested in long-term assets.
General accounting
I
Subject general accounting
Your company has net sales revenue of $43 million during the year. At the beginning of the year, fixed assets are $15 million. At the end of the year, fixed assets are $17 million. What the fixed asset turnover ratio? Multiple Choice 2.87 1.34 2.53 269
ast year Triangular Resources earned $5.4 million in net operating income and had an operating profit margin of 19.3 percent. If the firm's total asset turnover ratio was 1.59, what was the firm's investment in total assets?
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Aster Corp. earned a return on assets (ROA) of 12% for the current year. Its asset turnover is 2.0, and its return on equity (ROE) is 15%. Calculate Aster's profit margin. a. 6% b. 12% c. 7.5% d. 15%