Calculate ROE given the following information: profit margin = 20%; total asset turnover = 0.64; equity...

Calculate ROE given the following information: profit margin = 20%; total asset turnover = 0.64; equity multiplier = 1.50.

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jeff jeffy answered 2 years ago

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...

Jack Corp. has a profit margin of 9.70 percent, total asset turnover of 1.52, and ROE...

Jack Corp. has a profit margin of 9.70 percent, total asset turnover of 1.52, and ROE of 18.71 percent. What the firm's debt-equity ratio? If Roten Rooters, Inc., has an equity multiplier of 1.30, total asset turnover of 1.37 and a profit margin of 7.50 percent. What ROE ?

Jack Corp. has a profit margin of 8.70 percent, total asset turnover of 1.43, and ROE...

Jack Corp. has a profit margin of 8.70 percent, total asset turnover of 1.43, and ROE of 18.72 percent. What is the firm's debt-equity ratio?

Calculate the growth rate given the following: – Net profit margin 4% – Fixed asset turnover&

Calculate the growth rate given the following: – Net profit margin 4% – Fixed asset turnover 3.5 – Total asset turnover 2.2 – Total assets/equity 2.4 – Dividend payout ratio 45% A. 9.5% B. 11.6% C. 18.5%

Assume the following ratios are constant: Total asset turnover 2.2 Profit margin 7.5% Equity multiplier 1.4...

Assume the following ratios are constant: Total asset turnover 2.2 Profit margin 7.5% Equity multiplier 1.4 Payout ratio 30% What is the sustainable growth rate? (in %) (round 4 decimals)

you are gicen the following information for hendrix guitars inc. profit margin 5.7, total asset turnover...

you are gicen the following information for hendrix guitars inc. profit margin 5.7, total asset turnover 1.5, total debt ration .38, payout ratio 35%. calculate the sustainable growth rate.

Johnson Security Corp. has a ROE of 22 percent, profit margin of 10.0 percent, and total asset turnover of 1.1

Johnson Security Corp. has a ROE of 22 percent, profit margin of 10.0 percent, and total asset turnover of 1.1 . What is the firm's debt-equity ratio?

consider a company with ROE of 14.5%, and a profit margin of 6.5%. if total asset...

consider a company with ROE of 14.5%, and a profit margin of 6.5%. if total asset turnover is 1.8, what is the firm's debt-equity ratio?

Assuming the following ratios are constant,Total asset turnover=2.00Profit margin=8%Equity...

Assuming the following ratios are constant,Total asset turnover=2.00Profit margin=8%Equity multiplier=1.50Pay-out ratio=60%A. What is the sustainable growth rate? B. What is the internal growth rate? C. What is the difference between the above two rates in terms of meaning, assumption and application? Discuss.

You are given the following information for Clapton Guitars, Inc. Profit margin 10 % Total asset...

You are given the following information for Clapton Guitars, Inc. Profit margin 10 % Total asset turnover 1.4 Total debt ratio 0.49 Payout ratio 36 % Calculate the sustainable growth rate (in %) (round 4 decimal places)

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