问题
单项选择题
An investor has obtained the following information about Worldwide Industries, Inc. Net profit margin 8.7% Total asset turnover 2.4 times Dividendpayout ratio 35% Tax rate 35% Total sales $120 million Totalequity 40% of total assets Based on this information, Worldwide’s ROE is closest to:（）
A. 52.2%.
B. 14.5%.
C. 20.0%.
答案
参考答案：A
解析：
Since equity is 40% of assets, the leverage ratio is 1/0.40=2.5. Using the traditional DuPont formula, ROE=8.7%×2.4×2.5=52.2%.