If the asset turnover is 1.6, the financial leverage multiplier is 2.1, the return on asset is 25% and return on equity is 52.5%, what is  the net profit margin?  a. 15.63% c. 21.00%  b. 44.10% d. 32.81%

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.1.1MBA
icon
Related questions
Question

 If the asset turnover is 1.6, the financial leverage multiplier is 2.1, the return on asset is 25% and return on equity is 52.5%, what is  the net profit margin? 

a. 15.63% c. 21.00% 

b. 44.10% d. 32.81% 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning