A firm has a profit margin of 15 percent on sales of $20,000,000. If the firm has a debt of $7,500,000, total assets of $22,500,000, and an interest cost on a total debt of 5 percent, what is the firm's return on total assets (ROA)? (Round answer to two decimal places.)
A)8.47%
B)10.94%
C)12.02%
D)13.33%
E)15.18%

Question

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The Answer of A firm has a profit margin of 15 percent on sales of $20,000,000. If the firm has a debt of $7,500,000, total assets of $22,500,000, and an interest cost on a total debt of 5 percent, what is the firm's return on total assets (ROA)? (Round answer to two decimal places.)
A)8.47%
B)10.94%
C)12.02%
D)13.33%
E)15.18%

A Firm Has a Profit Margin of 15 Percent on Sales