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If a Retailer Has a Net Profit Margin of 3

Question 25

Multiple Choice

If a retailer has a net profit margin of 3 percent,asset turnover of 4.0x,and financial leverage of 2.0x,then its return on net worth is:


A) 6 percent.
B) 8 percent.
C) 12 percent.
D) 24 percent.
E) 48 percent.

Correct Answer:

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