单选题 An analyst has gathered the following information about a company.
The total asset turnover is 1.2.
The after-tax profit margin is 10 percent.
The financial leverage multiplier is 1.5.
Given this information, the company" s return on equity is:

A、 9%.
B、 18%.
C、 10%.

【正确答案】 B

【答案解析】ROE = Profit margin Total asset turnover financial leverage, ROE = 0.1×1.2×1.5 = 0.18 or 18.0%.