Answered: intensity ratio of 1.08, a current…

intensity ratio of 1.08, a current ratio of 1.25, and current assets of $138,000. What is the profit margin? {Hint: capital intensity ratio is related to total asset turnover.}

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

Section: Chapter Questions

Problem 1PS

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Question

Kelso's has a return on equity of 15.2 percent, a debt-equity ratio of 44 percent, a capital
intensity ratio of 1.08, a current ratio of 1.25, and current assets of $138,000. What is the
profit margin? {Hint: capital intensity ratio is related to total asset turnover.}
13.65%
9.72%
7.45%
11.40%
12.15%

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