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The Intelinet Corporation and Comp, Inc., have assets of $100,000 each and a return on common equity of 17%. Intelinet has twice the debt of Comp while Comp has half the sales of Intelinet. If Intelinet has net income of $10,000 and a total assets turnover ratio of 3.5, what is Comp Inc.’s profit margin? A. 3.31% B. 7.71% C. 10.00% D. 13.50% |