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
jeff jeffy answered 6 days agoRelated 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?
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