A company has a debt-to-equity ratio of 0.62, an asset turnover ratio of 1.39, and a...

A company has a debt-to-equity ratio of 0.62, an asset turnover ratio of 1.39, and a profit margin of 7.8%. The total equity is $ 672,100. What is the amount of net profit?

Solutions

Expert Solution

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

Company A has an Asset turnover ratio of .531, return on asset ratio of .127, and...

Company A has an Asset turnover ratio of .531, return on asset ratio of .127, and return on equity of .165. What does that tell me about company A? Company B has an Asset turnover ratio of 1.553, return on asset ratio of .012, and return on equity of .07. What does that tell me about company B? Compare Company A to Company B. The industry average has an Asset turnover ratio of .81, return on asset ratio of .113,...

1.OscarButtery, Inc. reported a profit margin of 14.2%, total asset turnover ratio of 1.5times, debt-to-equity ratio...

1.OscarButtery, Inc. reported a profit margin of 14.2%, total asset turnover ratio of 1.5times, debt-to-equity ratio of 0.625 times, net income of $775,000, and dividends paid to common stockholders of $321,625. The firm has no preferred stock outstanding. Whatis the firm's internal growth rate? A.more than 13.4%but less than 14.6% B.more than 12.2% but less than 13.4% C.more than 11.0% but less than 12.2% D.more than 9.8% but less than 11.0% E.less than 9.8% 2.In 2017, ForsythFlatbread, Inc. had net...

The company currently has a target debt–equity ratio of .45, but the industry target debt–equity ratio...

The company currently has a target debt–equity ratio of .45, but the industry target debt–equity ratio is .40. The industry average beta is 1.20. The market risk premium is 8 percent, and the risk-free rate is 6 percent. Assume all companies in this industry can issue debt at the risk-free rate. The corporate tax rate is 40 percent. The project requires an initial outlay of $680,000 and is expected to result in a $100,000 cash inflow at the end of...

If a company has a debt to equity ratio of 1.3, then the equity multiplier is...

If a company has a debt to equity ratio of 1.3, then the equity multiplier is approximately: 1. 2.3 2. 1.3 3. 2.6

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...

Calculate the following for each of the years listed A. Debt/ Equity ratio B. Debt/asset ratio...

Calculate the following for each of the years listed A. Debt/ Equity ratio B. Debt/asset ratio C.Profit Margin (as a %) D. Gross Margin (as a %) E. Calculate the change in profit margin over each year Exhibit 1: Iggy’s Financial Statements, 1994-1999 1994 1995 1996 1997 1998 1999 Income Statement Data Net revenue 1,000,000 2,500,000 3,000,000 4,000,000 4,500,000 6,000,000 Cost of goods sold Labor Other 570,000 220,000 350,000 1,700,000 900,000 800,000 1,920,000 1,080,000 840,000 2,520,000 1,480,000 1,040,000 3,195,000 1,890,000...

1. An asset turnover ratio of 1.87 for a company indicates that: a.the company has $1.87...

1. An asset turnover ratio of 1.87 for a company indicates that: a.the company has $1.87 of long-term debt for each dollar of operating revenue earned. b.the company is generating $1.87 of sales revenue for each dollar of long-term operating assets invested. c.the company is generating $1.87 of net income for each dollar of retained earnings. d.the company has $1.87 of current assets for each dollar of fixed assets invested. 2. The following information is available for Amanda Co. for...

Company has debt-to-total assets ratio is 0.4. What is its debt to equity ratio

The beta of the equity of CDE Company is 1.67 and CDE has a debt-to-equity ratio...

The beta of the equity of CDE Company is 1.67 and CDE has a debt-to-equity ratio of 0.67 calculated at market values. The debt is risk-free and perpetual. CDE generates annual EBIT of $100 and has 100 shares of common stock outstanding. The expected return on the market portfolio is 15% and the risk-free interest rate is 5%. The corporate tax rate is 30%. Assume that personal taxes and bankruptcy costs are not relevant. 1. Compute the current market value...

Current Ratio: Asset Turnover Ratio: Inventory Turnover Ratio: Days In Sales Inventory Ratio: Gross Margin Ratio:...

Current Ratio: Asset Turnover Ratio: Inventory Turnover Ratio: Days In Sales Inventory Ratio: Gross Margin Ratio: Earning Per Share Ratio: Discuss what each ratio indicates about company performance. What does each ratio “tell” about a company? Interpret the ratios and use the interpretation as a basis to analyze the operational effectiveness .

Subjects