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Morrison Motors has total equity of $289,100 and net income of $64,500. The debt-equity ratio is 0.45 and the total asset turnover is 1.6. What is the profit margin? a) 3.10 percent b) 5.23 percent c) 5.67 percent d) 8.21 percent e) 9.62 percent

Morrison Motors has total equity of $289,100 and net income of $64,500. The debt-equity ratio is 0.45 and the total asset turnover is 1.6. What is the profit margin? a) 3.10 percent b) 5.23 percent c) 5.67 percent d) 8.21 percent e) 9.62 percent

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
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Morrison Motors has total equity of $289,100 and net income of $64,500. The debt-equity ratio is 0.45 and the total asset turnover is 1.6. What is the profit margin? a) 3.10 percent b) 5.23 percent c) 5.67 percent d) 8.21 percent e) 9.62 percent
Transcribed Image Text:Morrison Motors has total equity of $289,100 and net income of $64,500. The debt-equity ratio is 0.45 and the total asset turnover is 1.6. What is the profit margin? a) 3.10 percent b) 5.23 percent c) 5.67 percent d) 8.21 percent e) 9.62 percent
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