A firm’s Return on Assets is 10%, its Total Asset Turnover is 2,and its Debt...

A firm’s Return on Assets is 10%, its Total Asset Turnover is 2, and its Debt Ratio is 0.75. This firm’s Profit Margin on Sales is:

	a.	20%
	b.	need to know what its Earnings After Tax are
	c.	5%
	d.	need to know what its Revenues are

Expert Solution

given return on assets is 10% formula return on asset = profit / total asset

total asset turnover 2 formula total asset turnover = sales/ total asset

profit on sales = profit / sales or return on asset / total asset turnover

=10%/2

=5%

OPITON C IS CORRECT

jeff jeffy answered 2 years ago

A firm’s Return on Assets is 10%, its Total Asset Turnover is 2, and its Debt...

A firm’s Return on Assets is 10%, its Total Asset Turnover is 2, and its Debt Ratio is 0.75. This firm’s Return on Equity is: a. 40% b. 13.33% c. 20% d. need to know what its Basic Earning Power is

A firm’s Total Assets is $4,000,000 and its Total Asset Turnover is 0.25. This firm’s Sales...

A firm’s Total Assets is $4,000,000 and its Total Asset Turnover is 0.25. This firm’s Sales equals: a. $250,000 b. $1,000,000 c. $16,000,000 d. $40,000,000

Total assets = $500,000, total asset turnover = 1.40, total debt ratio = 0.30, return on...

Total assets = $500,000, total asset turnover = 1.40, total debt ratio = 0.30, return on assets = 8.60%. What is the return on equity? A. Below 6.55% B. Between 6.55% and 8.05% C. Between 8.05% and 9.55% D. Between 9.55% and 11.05% E. Between 11.05% and 12.55% F. Between 12.55% and 14.05% G. Between 14.05% and 15.55% H. Above 15.55%

A firm’s Total Assets equals $10,000,000, and Total Equity equals $3,000,000. If its Return on Assets...

A firm’s Total Assets equals $10,000,000, and Total Equity equals $3,000,000. If its Return on Assets equals 10%, then what is its Earnings After Taxes? a. $700,000 b. need to know what its Revenues are c. $300,000 d. $1,000,000

a) ATM's turnover was $ 7,100 and its total assets were $ 4,500 while its debt-to-equity...

a) ATM's turnover was $ 7,100 and its total assets were $ 4,500 while its debt-to-equity ratio is 1.40. If the rate of return on equity reaches 10%, what is his net profit? b) ATM announces a dividend increase. In what way can it be interpreted by the market as good news? As bad news?

A firm’s profit margin is 18%, and its asset turnover ratio is .5. It has no...

A firm’s profit margin is 18%, and its asset turnover ratio is .5. It has no debt, has net income of $50 per share, and pays dividends of $35 per share. What is the sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)

The Harris Corporation currently has the following ratios: Total asset turnover = 1.6 (sales/total assets) Total...

The Harris Corporation currently has the following ratios: Total asset turnover = 1.6 (sales/total assets) Total debt to total assets = .5 Current ratio = 1.7 Current liabilities = $2,000,000 (a) If Hariss's sales are $16,000,000 what is the amount of total assets? (1.6=sales/TA) (b) Of the total in (a) above, what is the amount of current assets? (current ratio = CA/CL=1.7) (c) What is the total debt of the firm? (total debt to assets = total debt/TA from (a))...

What is a firm's total asset turnover

What is a firm's total asset turnover, If its fixed assets are 120,000 current assets are 30,000 current liabilities are 44,000 sales were 200,000 and net income was 75,000.

Austral & Company has a debt ratio of 0.5, a total assets turnover ratio of 0.25,...

Austral & Company has a debt ratio of 0.5, a total assets turnover ratio of 0.25, and a profit margin of 10%. The Board of Directors is unhappy with the current return on equity (ROE), and they think it could be doubled. This could be accomplished (1) by increasing the profit margin to 12% and (2) by increasing debt utilization. Total assets turnover will not change. What new debt ratio, along with the new 12% profit margin, would be required...

A firm has total asset turnover of 1.25. All assets and accounts payable vary directly with...

A firm has total asset turnover of 1.25. All assets and accounts payable vary directly with sales. Debt and equity do not vary with sales. Current sales are $1,000 and are expected to grow 10% over the year. Accounts payable are 1% of assets. The firm’s net profit margin is 8% and it expects to pay dividends in the amount of $20. Calculate the firm’s External Financing Need.

Question