Question

In: Finance

Billy Bob Corp has a profit margin (income to sales) of 3.1%. Sales-to-assets measures a ratio...

Billy Bob Corp has a profit margin (income to sales) of 3.1%. Sales-to-assets measures a ratio of 1.2x. The capital structure of BBC is 40% debt & 60% equity. What is BBC's return on equity?  (Answer in % format with no % sign needed, xx.x, to the level of 10 basis points.)

Solutions

Expert Solution

jeff jeffy answered 2 months ago
Next > < Previous

Related Solutions

Profit margin measures the income earned on each dollar of sales, and is caculated by dividing...
Profit margin measures the income earned on each dollar of sales, and is caculated by dividing net income by net sales. True False Other things being equal, the higher the debt to equity ratio, the higher the risk of bankruptcy. True False We use horizontal analysis to analyze trends in financial statement data, such as the dollar amount of change and the percentage change, for one company over time True False
Cliff Corp. reported net income of $90,000, a profit margin of 8.7%, a debt-to-equity ratio of...
Cliff Corp. reported net income of $90,000, a profit margin of 8.7%, a debt-to-equity ratio of 0.60 and total asset turnover of 2.2. What is Cliff Corp.’s ROA? Select one: a. 8.70% b. 18.92% c. 19.14% d. 22.12% e. None of the above.
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...
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...
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              %
Nerk pharm. net profit margin was 10% on sales of $2,000,000. Debt to assets was 40%...
Nerk pharm. net profit margin was 10% on sales of $2,000,000. Debt to assets was 40% with total liabilities of $500,000. How much was the Return on Assets?
A firm has Net income- $195,000 Profit Margin- 10.0% Accounts Receivable- $100,000 Percent of Sales On...
A firm has Net income- $195,000 Profit Margin- 10.0% Accounts Receivable- $100,000 Percent of Sales On Credit- 85% Fill out the rest of the information below, show all work and calculations Sales-? Credit Sales-? Receivables Turnover- ? Times Days sales in Receivables- ? Days
Operating Profit Margin Return on Total Assets Current Ratio Working Capital Long-term debt-to-capital ratio Price-Earnings Ratio...
Operating Profit Margin Return on Total Assets Current Ratio Working Capital Long-term debt-to-capital ratio Price-Earnings Ratio Which measure do you feel is the most important and why?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT