单选题 If the company's net profit margin declines to 0.10 in 2005, what total asset turnover would be needed in order to maintain the same ROE as in 2004, assuming there is no change in the financial leverage multiplier?

A、

A. 2.50.
B、

B. 1.50.
C、

C. 3.15.

【正确答案】 C

【答案解析】ROE for 2005 can be computed as follows : 0.1 × asset turnover × 1.5 = 0.4725. Hence, desired asset turnover will be 3.15.