If a company's prior year had a Return on Investment at -4 percent, assets to equity...

If a company's prior year had a Return on Investment at -4 percent, assets to equity ratio of 2, with a Net profit margin of -1.5 percent, how would you use the dupont system to find the asset turnover ratio? Separately explain how this ratio impacts the company's Return on Investment for the year.

Expert Solution

jeff jeffy answered 1 year ago

Coca-Cola’s return on assets was 19.4 percent, and return on common shareholders’ equity was 41.7 percent....

Coca-Cola’s return on assets was 19.4 percent, and return on common shareholders’ equity was 41.7 percent. Briefly explain why these two percentages are different. Coca-Cola had earnings per share of $5.12, and PepsiCo had earnings per share of $3.97. Is it accurate to conclude PepsiCo was more profitable? Explain your reasoning. Name a ratio used to evaluate short-term liquidity. Explain what the statement “evaluate short-term liquidity” means. Explain the difference between the current ratio and the quick ratio. Coca-Cola had...

Brown and Co. has a return on assets of 14 percent, an equity multiplier of 1.8,...

Brown and Co. has a return on assets of 14 percent, an equity multiplier of 1.8, and a dividend payout ratio of 40 percent. What is the firm’s internal rate of growth? 9.17% None of the above 5.93% 7.80% 7.68%

Company R has a return on assets of 12 percent, an equity multiplier of 1.6, and...

Company R has a return on assets of 12 percent, an equity multiplier of 1.6, and a dividend payout ratio of 40 percent. What is Company R's internal rate of growth? A.7.68 percent B.7.76 percent C.7.90 percent D.7.50 percent

Gates Appliances has a return-on-assets (investment) ratio of 22 percent. a. If the debt-to-total-assets ratio...

Gates Appliances has a return-on-assets (investment) ratio of 22 percent. a. If the debt-to-total-assets ratio is 50 percent, what is the return on equity?

Hanan corporation has the following relationships: Return on assets (ROA) 4%, Return on equity (ROE) 8%....

Hanan corporation has the following relationships: Return on assets (ROA) 4%, Return on equity (ROE) 8%. What is the equity ratio? Select one: a. 25% b. 40% c. 50% d. 60% IF CDD has sales revenues of $300,000 and inventory turnover 5x. Find the company ending inventories? Select one: a. $300,000 b. $50,000 c. $240,000 d. $60,000 Find the price of a corporate bond which has a par value of $1000 and coupon payment is 5% and yield is 8%....

Question 27 If a firm produces a 4 percent return on assets and also a 12...

Question 27 If a firm produces a 4 percent return on assets and also a 12 percent return on equity, then the firm: Select one: a. is using its assets as efficiently as possible. b. also has a current ratio of 10. c. has no debt of any kind. d. has an equity multiplier of 3. e. has an equity multiplier of 2. Question 28 The total long-term debt and equity of the firm is frequently called: Select one: a....

15. SME Company has a debt-equity ratio of .60. Return on assets is 7.7 percent, and...

15. SME Company has a debt-equity ratio of .60. Return on assets is 7.7 percent, and total equity is $520,000. a. What is the equity multiplier? b. What is the return on equity? c. What is the net income?

A firm has a Return on Assets and Return on Equity that are bothlower than...

A firm has a Return on Assets and Return on Equity that are both lower than its industry averages. Its Debt Ratio and Total Asset Turnover both equal its industry average. This firm’s main problem is that:a.its debt is too lowb.its Return on Equity is too low.c.its operating costs are too low.d.its Profit Margin on Sales is too low.

Why is the return on equity greater than the return on assets if the cost of...

Why is the return on equity greater than the return on assets if the cost of debt is less than the ROA? Why is the ROE less than the ROA if the cost of debt is greater than the ROA? Why does the ROE equal the ROA if the cost of debt is equal to the ROA?

Sales/Total assets = 4.5× Return on assets (ROA) = 10.0% Return on equity (ROE) = 50.0%...

Sales/Total assets = 4.5× Return on assets (ROA) = 10.0% Return on equity (ROE) = 50.0% Book Value of Stockholders’ equity = $30 Price/Earnings ratio = 6.0x Common shares outstanding = 50 Market/Book ratio = 3.0x A. Calculate the price of a share of the company’s common stock. B. Calculate debt-to-assets ratio assuming the firm uses only debt and common equity. C. What were sales last year? D. What is the company’s market value?

Question