Question
The asset turnover ratio a. considers how much revenue a firm is able to generate relative to its assets base b. affects the firm's ROE
The asset turnover ratio
a. considers how much revenue a firm is able to generate relative to its assets base
b. affects the firm's ROE in that a higher ratio increases ROE and a lower ratio decreases ROE other things equal
c. captures the capital intensity of a business: the more capital intense a firm is, the lower its asset turnover
d. all of the above
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Financial Accounting: A Business Process Approach
Authors: Jane L. Reimers
3rd edition
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