Question
A company's financial statements show a profit margin of
15% and a return on equity (ROE) of 20%. What is the company's asset turnover ratio assuming financial leverage of 2?Solution
The asset turnover ratio is calculated as revenue divided by total assets. Using the formula for ROE, we can solve for the asset turnover ratio: ROE = Profit margin x Asset turnover ratio x Leverage 20% = 15% x Asset turnover ratio x (Total assets / Shareholder equity) Asset turnover ratio = 20% / (15% x (Total assets / Shareholder equity)) Asset turnover ratio = 20% / (15% x 2) Asset turnover ratio = 0.67
What can be the possible word of the given code ‘Y0 D21’?
What is the code for ‘do’?
Which of the following of code is ‘six one’?
- In a certain code language, ‘WISDOM’ is coded as ‘JTXNPE’, then ‘VECTOR’ will be coded as ______ in the same code language.
What is the code for ‘do’?
What may be the possible code for “focus real” in the given code language?
What is the code for ‘four ten three’?
In a certain code language, ‘MASTER’ is coded as '240', and 'LEADER' is coded as '186'. What is the code for 'BRIGHT' in that code language?
What may be the possible code for “focus real” in the given code language?
In a certain coded language, the word MENU is coded as 13-5-14-21. Following the same rule of coding, what should be the code for the word FOOD?
