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Net profit as a % to Assets

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You have invested $5,000 in the Cog Corporation and $5,000 in the Gear Corporation. Both of these corporations have $100 million in total assets. The Cog Corporation had a net profit of $10 million and the Gear Corporation had a net profit of $5 million. You read their annual reports and both companies had established a goal of having a net profit equal to 10% of total assets.

a. Cog is effective and more efficient than Gear.
b. Cog is effective but less efficient than Gear.
c. Gear is effective and more efficient than Cog.
d. Gear is effective but less efficient than Cog.
e. Can't tell without more information.

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Response guides about net profit equal to 10% of total assets.

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You have invested $5,000 in the Cog Corporation and $5,000 in the Gear Corporation. Both of these corporations have $100 million in total assets. The Cog ...

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