Primavera Holding has a profit margin of 25%, an asset turnover of 0.5 and financial leverage (assets to equity) of 1.5. Primavera has $20 billion in assets, of which half is in cash and marketable securities. Assume that primavera earns a 3 percent after-tax return on cash and marketable securities as a dividend to shareholders?
Negative
Between 0% and 20%
Between 20% and 40%
between 40% and 60%
Greater than 60%
+2
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Home » Business » Primavera Holding has a profit margin of 25%, an asset turnover of 0.5 and financial leverage (assets to equity) of 1.5. Primavera has $20 billion in assets, of which half is in cash and marketable securities.