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?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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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?
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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