A firm has a (net profit/pretax profit) ratio of 0.6, a leverage ratio of 2, a (pretax profit/EBIT) of 0.6, an asset turnover ratio of 2.5, a current ratio of 1.5, and a return on sales ratio of 4%. The firm's ROE is
A) 4.2%.
B) 5.2%.
C) 6.2%.
D) 7.2%.
E) None of the options are correct.

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The Answer of A firm has a (net profit/pretax profit) ratio of 0.6, a leverage ratio of 2, a (pretax profit/EBIT) of 0.6, an asset turnover ratio of 2.5, a current ratio of 1.5, and a return on sales ratio of 4%. The firm's ROE is
A) 4.2%.
B) 5.2%.
C) 6.2%.
D) 7.2%.
E) None of the options are correct.

A Firm Has a (Net Profit/pretax Profit) Ratio of 0