XYZ Corporation generated a 1.20 total asset turnover in its total assets of P2,000,000.  The firm’s liabilities of P1,800,000. The firm’s net profit margin was 1.3%.  What is the firm’s return on equity? 1.56% 7.70% 13.0% 15.60%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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XYZ Corporation generated a 1.20 total asset turnover in its total assets of P2,000,000.  The firm’s liabilities of P1,800,000. The firm’s net profit margin was 1.3%.  What is the firm’s return on equity?

  • 1.56%
  • 7.70%
  • 13.0%
  • 15.60%
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