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Which of the Following Will Allow Your Firm to Achieve

Question 38

Multiple Choice

Which of the following will allow your firm to achieve its targeted 16% ROA with an asset turnover of 2.5?


A) A leverage ratio of .0667
B) A P/E ratio of 14
C) A return on equity of 25%
D) A profit margin of 6.4%

Correct Answer:

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