Assume you are given the following relationships for the Warner Corporation:             Sales / Total assets                      1.2×             Return on assets (ROA)            3.95%             Return on equity (ROE)            7.70% Calculate Warner’s profit margin.   a. 4.74%   b. 9.24%   c. 3.29%   d. 1.95%   e. 6.42%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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  1. Assume you are given the following relationships for the Warner Corporation:

                Sales / Total assets                      1.2×
                Return on assets (ROA)            3.95%
                Return on equity (ROE)            7.70%

    Calculate Warner’s profit margin.

      a.

    4.74%

      b.

    9.24%

      c.

    3.29%

      d.

    1.95%

      e.

    6.42%

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