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、

A. 9%.
B、

B. 18%.
C、

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%.