If a firm has a total asset turnover of 8 times and a return on investment of 15%, its net profit margin must be ____.
A) 1.875%
B) 1.95%
C) 2.05%
D) 2.25%

Name: If a firm has a total asset turnover of 8 times and a return on investment of 15%, its net profit margin must be ____. A) 1.875% B) 1.95% C) 2.05% D) 2.25%
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Question

Quizplus · Accepted Answer

The net profit margin can be calculated using the formula: Net Profit Margin = Return on Investment / Total Asset Turnover. Substituting the given values: 15% / 8 = 1.875%.

If a Firm Has a Total Asset Turnover of 8