Question
In: Finance
A firm has a profit margin of 2% and an equity multiplier of 2.9. Its sales are $200 million, and it has total assets of $120 million.
4. A firm has a profit margin of 2% and an equity multiplier of 2.9. Its sales are $200 million, and it has total assets of $120 million. What is its ROE? Do not round intermediate calculations. Round your answer to two decimal places.
Solutions
jeff jeffy answered 2 years agoRelated Solutions
A firm has a profit margin of 2% and an equity multiplier of 2.3. Its sales...
A firm has a profit margin of 2% and an equity multiplier of
2.3. Its sales are $310 million, and it has total assets of $186
million. What is its ROE? Do not round intermediate calculations.
Round your answer to two decimal places.
1. The firm, MBI, has Total Assets of $190,000, Equity of $100,000, Net Profit Margin of...
1. The firm, MBI, has Total Assets of $190,000, Equity of
$100,000, Net Profit Margin of 3.7 percent, Total Asset Turnover of
2.89. Calculate the firm’s Return on Equity, ROE (Hint:
Use DuPont Identity). If the firm increases its
debt-equity ratio will the ROE increase or decrease?
20.32 percent, increase
20.32 percent, decrease
38.99 percent, increase
38.99 percent, decrease
5.67 percent, increase
2. A firm has Net Income of $60,800 and has Total Assets of
$601,991. The firm’s payout ratio...
Total assets are $14.2million, while sales are $19.2million, and total liabilities are $5 million. Profit margin...
Total assets are $14.2million, while sales are $19.2million, and
total liabilities are $5 million. Profit margin equals 10%.
Requirement 1:
What is net income? (Do not round intermediate
calculations. Enter your answer in dollars, not
millions of dollars (e.g., 1,234,567).)
Net income
$
Requirement 2:
What is ROA? (Do not round intermediate
calculations. Enter your answer as a percent
rounded 2 decimal places (e.g., 32.16).)
ROA
%
Requirement 3:
What is ROE? (Do not round intermediate
calculations. Enter your answer...
Equity Multiplier (EM) is calculated by Dividing Total Assets bt the Total Equity of the Firm....
Equity Multiplier (EM) is calculated by Dividing Total
Assets bt the Total Equity of the Firm.
This Ratio is called EM, Because:
There is no Reason to call it Equity Multiplier (EM) -
It just shows the Total Assets in $ are so many times the Total
Amount of Equity in $ (TE) of the Firm.
When we Multiply by the Total Asset
Turnover (TATO of the Firm, we get Return on
Equity (ROE)
When we Multiply by the Profit Margin (PM) of...
ABC Electronics has sales of $225,000, profit margin of 9%, total assets of $280,000, and total...
ABC Electronics has sales of $225,000, profit margin of 9%,
total assets of $280,000, and total equity of $210,000. The firm
does not pay any dividends and does not plan to pay any dividends
in the future. Currently, the firm is operating at 80% capacity.
All costs vary directly with sales. The firm does not want to
obtain any additional external equity. At the sustainable rate of
growth, what will be the amount of debt on the firm’s pro-forma
balance...
Cleon's company has sales of $225,000, profit margin of 9%, total assets of $280,000, and total...
Cleon's company has sales of $225,000, profit margin of 9%,
total assets of $280,000, and total equity of $210,000. The firm
does not pay any dividends and does not plan to pay any dividends
in the future. Currently, the firm is operating at 80% capacity.
All costs vary directly with sales. The firm does not want to
obtain any additional external equity. At the sustainable rate of
growth, what will be the amount of debt on the firm’s pro-forma
balance...
ABC Electronics has sales of $225,000, profit margin of 9%, total assets of $280,000, and total...
ABC Electronics has sales of $225,000, profit margin of 9%,
total assets of $280,000, and total equity of $210,000. The firm
does not pay any dividends and does not plan to pay any dividends
in the future. Currently, the firm is operating at 80% capacity.
All costs vary directly with sales. The firm does not want to
obtain any additional external equity. At the sustainable rate of
growth, what will be the amount of debt on the firm’s pro-forma
balance...
AA had a profit margin of 8%, a total assets turnover of 1.5 and an equity...
AA had a profit margin of 8%, a total assets turnover of 1.5 and
an equity multiplier of 1.8. 1. Calculate company's ROE . 2. What
can you say about this ROE if ROE's Industry Average is 15%
Coconut, Inc. has sales of $610,400, total equity of $170,000, a profit margin of 10 percent...
Coconut, Inc. has sales of $610,400, total equity of $170,000, a
profit margin of 10 percent and a debt-equity ratio of 0.8. What is
the return on assets?
23.70 percent
21.34 percent
19.95 percent
25.50 percent
4 points
QUESTION 22
Blueberry, Inc. has total assets of $642,000. There are 60,000
shares of stock outstanding with a market value of $42 a share. The
firm has a profit margin of 7 percent and a total asset turnover of
1.36. What...
Dearborn Supplies has total sales of $191 million, assets of $95 million, a return on equity...
Dearborn Supplies has total sales of $191 million, assets of $95
million, a return on equity of 32 percent, and a net profit margin
of 7.3 percent. What is the firms debt ratio?
The company's debt ratio is what percent? Round to one decimal
place.
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