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Morrison Motors has total equity of $289,100 and net income of $64,500. The debt-equity ratio is 0.45 and the total asset turnover is 1.6. What is the profit margin? a) 3.10 percent b) 5.23 percent c) 5.67 percent d) 8.21 percent e) 9.62 percent

Morrison Motors has total equity of $289,100 and net income of $64,500. The debt-equity ratio is 0.45 and the total asset turnover is 1.6. What is the profit margin? a) 3.10 percent b) 5.23 percent c) 5.67 percent d) 8.21 percent e) 9.62 percent

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Morrison Motors has total equity of $289,100 and net income of $64,500. The debt-equity ratio is 0.45 and the total asset turnover is 1.6. What is the profit margin? a) 3.10 percent b) 5.23 percent c) 5.67 percent d) 8.21 percent e) 9.62 percent
Transcribed Image Text:Morrison Motors has total equity of $289,100 and net income of $64,500. The debt-equity ratio is 0.45 and the total asset turnover is 1.6. What is the profit margin? a) 3.10 percent b) 5.23 percent c) 5.67 percent d) 8.21 percent e) 9.62 percent
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