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Nancy Jerzak
on Dec 17, 2024

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The Central Division of Nebraska Company has a return on investment of 28% and a profit margin of 14%. The investment turnover is

A) 0.2
B) 2.0
C) 5.0
D) 0.5

Investment Turnover

A measure of a company's ability to generate sales from its investment in assets, typically used to assess the efficiency of investment usage.

Profit Margin

A ratio of profitability calculated as net income divided by revenue, showing the percentage of each dollar of revenue that results in net income.

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment relative to its cost.

  • Calculate and interpret the profit margin and investment turnover.
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Sydney SeymourDec 23, 2024
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