If, for the S&P Industrials Index, the profit margin was .25 and the equity turnover ratio was 12, the ROE would be
A) 0.83 percent.
B) 0.48 percent.
C) 3.00 percent.
D) 30.00 percent.
E) 48.00 percent.

Name: If, for the S&P Industrials Index, the profit margin was .25 and the equity turnover ratio was 12, the ROE would be A) 0.83 percent. B) 0.48 percent. C) 3.00 percent. D) 30.00 percent. E) 48.00 percent.
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Question

Quizplus · Accepted Answer

ROE = Profit Margin * Equity Turnover Ratio = 0.25 * 12 = 3.00%

If, for the S&P Industrials Index, the Profit Margin Was