If net profit margin is 5.0 percent, rate of asset turnover is 4.0x, and financial leverage is 2.0x, then return on net worth is:

If net profit margin is 5.0 percent, rate of asset turnover is 4.0x, and financial leverage is 2.0x, then return on net worth is:

If net profit margin is 5.0 percent, rate of asset turnover is 4.0x, and financial leverage is 2.0x, then return on net worth is:


a. 8.0 percent.

b. 10.0 percent.

c. 20.0 percent.

d. 40.0 percent.

e. 80.0 percent.


Answer: D


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