apple inc. has a profit margin of 16%, capital intensity rartion of 1.8, and roe of...

apple inc. has a profit margin of 16%, capital intensity rartion of 1.8, and roe of 15%. what is the firms debt equity ratio?

Expert Solution

Profit margin=net income/sales

net income=0.16*Sales

Capital intensity ratio=Total assets/Sales

Total assets=1.8*Sales

ROE=net income/equity

Net income=0.15*Equity

Total assets=Total liabilities+Total equity

Debt=(1.8*Sales)-(Net income/0.15)

=(1.8*Net income/0.16)-(Net income/0.15)

=(11.25*Net income)-(Net income/0.15)

=4.58333333*Net income

Debt equity ratio=debt/equity

=(4.58333333*Net income)/(Net income/0.15)

=0.6875

jeff jeffy answered 2 years ago

Northwestern Lights Inc., has the following information: Profit margin = 7.25%, Capital intensity ratio = 0.55,...

Northwestern Lights Inc., has the following information: Profit margin = 7.25%, Capital intensity ratio = 0.55, Debt-equity ratio = 0.64, Net income = $99,000, Dividends = $40,000. Compute the sustainable growth rate for the company. Select one: a. 14.79% b. 13.79% c. 15.72% d. 15.79% e. 18.72%

company ABC has a profit margin of 8.5% a capital intensity ratio of .8, debt equity...

company ABC has a profit margin of 8.5% a capital intensity ratio of .8, debt equity ratio of .6 net income of $31,000 in dividends paid to $15,810 what is a sustainable rate of growth 9.94 percent 9.58 9.42 9.09 9.93

Carter, Inc., a manufacturer of electrical supplies, has an ROE of 23.1 percent, a profit margin...

Carter, Inc., a manufacturer of electrical supplies, has an ROE of 23.1 percent, a profit margin of 4.30 percent, and a total asset turnover ratio of 2.79 times. Its peer group also has an ROE of 23.1 percent but has out performed Carter with a profit margin of 5.16 percent and a total assets turnover ratio of 3 times. Calculate the Carter's equity multiplier and peer group equity multiplier. (Round answers to 2 decimal places, e.g.12.55.)

Return on Equity (ROE)= Sales Margin* Asset turnover* Gearing ratio ROE= Profit/equity Sales Margin= Profit/Sales Asset...

Return on Equity (ROE)= Sales Margin* Asset turnover* Gearing ratio ROE= Profit/equity Sales Margin= Profit/Sales Asset turnover= Sales/Assets Gearing Ratio= Assets/Equity This formula is important from strategy point of view as higher ROE is possible in a low profit margin business by increasing the asset turnover and by taking debt to increase the capital employed. This Question I need it to answer ---> "good very high level summary of the ratios in this DQ. Can you provide back to me...

Henderson's Hardware has an ROA of 15%, a 4.5% profit margin, and an ROE of 20%....

Henderson's Hardware has an ROA of 15%, a 4.5% profit margin, and an ROE of 20%. What is its total assets turnover? Do not round intermediate calculations. Round your answer to two decimal places. What is its equity multiplier? Do not round intermediate calculations. Round your answer to two decimal places.

Henderson's Hardware has an ROA of 7%, a 6% profit margin, and an ROE of 20%....

Henderson's Hardware has an ROA of 7%, a 6% profit margin, and an ROE of 20%. What is its total assets turnover? Do not round intermediate calculations. Round your answer to two decimal places. What is its equity multiplier? Do not round intermediate calculations. Round your answer to two decimal places.

Company has an ROA of 8.4 percent, a profit margin of 9.50 percent, and an ROE...

Company has an ROA of 8.4 percent, a profit margin of 9.50 percent, and an ROE of 15.50 percent. Requirement 1: What is the company’s total asset turnover? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Total asset turnover times Requirement 2: What is the equity multiplier? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Equity multiplier times

A firm has an ROA of 15%, profit margin of 3% and ROE of 30%. What...

A firm has an ROA of 15%, profit margin of 3% and ROE of 30%. What is its liability to total asset ratio? 50% 60% 70% 20% A firm has an ROA of 15%, profit margin of 3% and ROE of 25%. What is its liability to total asset ratio? 59.88% 60.05% 40.00% 20.16% A firm has an ROA of 15%, profit margin of 3% and ROE of 25%. What is its liability to total asset ratio? 59.88% 60.05% 40.00%...

Henderson's Hardware has an ROA of 12%, a 8% profit margin, and an ROE of 17%....

Henderson's Hardware has an ROA of 12%, a 8% profit margin, and an ROE of 17%. a.) What is its total assets turnover? Round your answer to two decimal places. b.) What is its equity multiplier? Round your answer to two decimal places. **** PLEASE. LABEL BOTH ANSWERS CLEARLY*****

Profit margin = 9.2 % Capital intensity ratio = .53 Debt−equity ratio = .68 Net income...

Profit margin = 9.2 % Capital intensity ratio = .53 Debt−equity ratio = .68 Net income = $ 103,000 Dividends = $ 52,000 Based on the above information, calculate the sustainable growth rate for Southern Lights Co. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate %

Question