Manufacturer A has a profit margin of 2.0%,an asset turnover of 1.7 and an equity multiplier of 4.9.
Manufacturer B has a profit margin of 2.3%,an asset turnover of 1.1 and an equity multiplier of 4.7.
How much asset turnover should manufacturer B have to match manufacturer A's ROE?
A)1.54%
B)3.00%
C)3.09%
D)4.77%

Question

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The Answer of Manufacturer A has a profit margin of 2.0%,an asset turnover of 1.7 and an equity multiplier of 4.9.
Manufacturer B has a profit margin of 2.3%,an asset turnover of 1.1 and an equity multiplier of 4.7.
How much asset turnover should manufacturer B have to match manufacturer A's ROE?
A)1.54%
B)3.00%
C)3.09%
D)4.77%

Manufacturer a Has a Profit Margin of 2