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George Costanza, a divisional manager with Vandaley Industries, has learned that his division's ROA for 2016 is 7. He also knows that his division's...
George Costanza, a divisional manager with Vandaley Industries, has learned that his division’s ROA for 2016 is 7.5%. He also knows that his division’s 2016 net profit margin is 1.97%. However, his laptop with the rest of his division’s financial statements fell out of his bag and was run over by a rickshaw pulled by a tall, wild-eyed man with kind of wild hair. He also knows that average total assets for 2016 were $425 and average total equity was $320. Being the resourceful person he is, George can use the information he has to calculate his 2016 asset turnover, which is: (Note: you don’t necessarily have to use all information available to you; you must pick out what you need and ignore what you don’t.) The answer is 3.81. Please show your work.
a. 676.82
b. 26.27
c. 3.81
d. 5.06
e. None of the above.