medium · CFA Level I fsa
Westfork Bancorp's ROE was 15.0% last year. This year, its net profit margin remained at 10.0%, but its total asset turnover fell from 1.2 to 1.0.
If Westfork wants to maintain its ROE at 15.0%, what must its financial leverage ratio (TA/E) be this year?
- 1.25
- 0.67
- 1.50
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