The first question: Assuming that the asset turnover rate for an industrial company was 2 times annually in 2021, and that the return on total assets is estimated at 8%, what is the net profitability in the company? And if you knew that in 2022 the asset turnover rate became 1.5 times, and the net profitability was 6%, then what is the rate of return. on investment? And which of the two positions is more profitable?
The first question: Assuming that the asset turnover rate for an industrial company was 2 times annually in 2021, and that the return on total assets is estimated at 8%, what is the net profitability in the company? And if you knew that in 2022 the asset turnover rate became 1.5 times, and the net profitability was 6%, then what is the rate of return. on investment? And which of the two positions is more profitable?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 10MC
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Ee 201.
![The first question: Assuming that the asset turnover
rate for an industrial company was 2 times annually
in 2021, and that the return on total assets is
estimated at 8%, what is the net profitability in the
company? And if you knew that in 2022 the asset
turnover rate became 1.5 times, and the net
profitability was 6%, then what is the rate of return
on investment? And which of the two positions is
more profitable?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5687fb83-fd7a-4439-8d0d-6db0a7688176%2F89d73435-2090-4986-bc2b-d9f3d0443ce0%2F8upk8we_processed.png&w=3840&q=75)
Transcribed Image Text:The first question: Assuming that the asset turnover
rate for an industrial company was 2 times annually
in 2021, and that the return on total assets is
estimated at 8%, what is the net profitability in the
company? And if you knew that in 2022 the asset
turnover rate became 1.5 times, and the net
profitability was 6%, then what is the rate of return
on investment? And which of the two positions is
more profitable?
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