The firm's leverage ratio is 1.2, interest-burden ratio is 0.81, and profit margin is 0.24, and its asset turnover is 1.25. What is the firm's ROA?
A) 0.25
B) 0.3
C) 0.335
D) 0.372

Name: The firm's leverage ratio is 1.2, interest-burden ratio is 0.81, and profit margin is 0.24, and its asset turnover is 1.25. What is the firm's ROA? A) 0.25 B) 0.3 C) 0.335 D) 0.372
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Question

Quizplus · Accepted Answer

ROA = Margin × Asset turnover = 0.24 × 1.25 = 0.3

The Firm's Leverage Ratio Is 1