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Asset turnover ratio is defined as sales / total assets. Suppose Bentley Oil maintains an operating profit margin of 5 percent and asset turnover ratio

Asset turnover ratio is defined as sales/total assets. Suppose Bentley Oil maintains an operating profit margin of 5 percent and asset turnover ratio of 3. Calculate its ROA. If its debt-equity ratio is 1.0, its taxes are $8000, and EBIT is $20,000, what is its ROE? d. What does the reserve life index tell you?

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