If a retailer has a net profit margin of 3 percent, asset turnover of 4.0x, and financial leverage of 2.0x, then its return on net worth is:
a. 6 percent.
b. 8 percent.
c. 12 percent.
d. 24 percent.
e. 48 percent.
Answer: D
Marketing MCQ
Retailing Chapter 2
If a retailer has a net profit margin of 3 percent, asset turnover of 4.0x, and financial leverage of 2.0x, then its return on net worth is: