The Blue Lagoon has a return on equity of 18.9 percent,an equity multiplier of 1.9,and a total asset turnover of 1.45.What is the profit margin?
A)2.76 percent
B)3.57 percent
C)4.90 percent
D)6.85 percent
E)14.60 percent

Name: The Blue Lagoon has a return on equity of 18.9 percent,an equity multiplier of 1.9,and a total asset turnover of 1.45.What is the profit margin? A)2.76 percent B)3.57 percent C)4.90 percent D)6.85 percent E)14.60 percent
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Quizplus · Accepted Answer

Profit margin = 0.189/(1.45 × 1.9) = 6.85 percent

The Blue Lagoon Has a Return on Equity of 18