-In the above Strategic Profit Model what is the hypothetical firm's ROA?
A)8%
B)0.8
C)32%

Question

-In the above Strategic Profit Model what is the hypothetical firm's ROA?
A)8% 
B)0.8 
C)32%

Quizplus · Accepted Answer

The Return on Assets (ROA) is calculated by dividing the net profit by the total assets. In the Strategic Profit Model, if a hypothetical firm has a net profit margin (net profit/revenue) and an asset turnover (revenue/total assets), the ROA is the product of these two ratios. Without specific numbers, if we assume a scenario where the net profit margin and asset turnover ratios multiply to give a result, a typical ROA percentage would be a realistic answer, such as 32%.

-In the Above Strategic Profit Model What Is the Hypothetical