Using the table below, you are asked to calculate perform three-factor ROE decomposition (i.e. calculate ROE...

Using the table below, you are asked to calculate perform three-factor ROE decomposition (i.e. calculate ROE and its components) for all three of the following companies. What would you advise each company to do to improve its ROE? Discuss the specific component that needs to be improved and present an example of how it could done. Please round your answers to two decimal places.

	MTR	TKO	NRM
Sales	6,900	2,600	1,900
Net income	200	100	100
Average Assets	4,000	4,800	2,600
Average Equity	1,000	1,500	1,800
Average Liabilities	3,000	3,300	1,400

Expert Solution

ROE = profit margin * asset turnover * equity multiplier

profit margin = net income / sales

asset turnover = sales / average assets

Equity multiplier = average assets / average equity

The formulas are below

MTR

It is advised to improve profit margin to improve ROE. For example, this could be done by reducing expenses or increasing sale price

KTO

It is advised to improve profit margin and asset turnvover to improve ROE. For example, this could be done by increasing sale price or reducing excessive investment in assets.

NRM

It is advised to improve equity multiplier to improve ROE. For example, this could be done by increasing the proportion of debt in the capital structure

jeff jeffy answered 1 year ago

DuPont Analysis of Return on Equity 1. Using the following table, calculate the ROE in each...

DuPont Analysis of Return on Equity 1. Using the following table, calculate the ROE in each year using the simple formula. 2. Use the three step DuPont ROE process and show your work. 3. Summarize the findings in your DuPont ROE analysis. Select Financial Data for ABC Corp. 2017 2018 2019 Sales 20,000 22,000 25,000 Net Income 1,000 1,500 1,600 Total Assets 20,000 20,000 30,000 Total Equity 15,000 16,000 15,000

Using the table below calculate the missing values.

Using the table below calculate the missing values.YearNominal GDPReal GDPGDP Deflator1 (2007)3,753____________812 (2008)4,5515,009____________3 (2009)5,150____________100.004 (2010)5,6665,255____________5 (2011)____________6,175 158Enter the missing values : the inflation/growth rates as indicated below.Inflation rate year 1-2 ____________Inflation rate year 3-4 ____________Real growth rate yr. 2-3 ____________Real growth rate yr. 4-5 ____________

How do you perform Hypothesis Testing on a regression model using an ANOVA table below. This...

How do you perform Hypothesis Testing on a regression model using an ANOVA table below. This is to show the significance of the 4 independent variables. ANOVA df SS MS F Significance F Regression 3 17643.17 5881.05 22.21 0.00001376 Residual 14 3706.59 264.75 Total 17 21349.76

Using R and the data in the table below, perform the regression of D on C...

Using R and the data in the table below, perform the regression of D on C (i.e., report the regression equation). C D 3 2 6 7 8 5 9 4 1 0 3 4 Hint: The code to enter the vectors C and D into R is: C <- c(3, 6, 8, 9, 1, 3) D <- c(2, 7, 5, 4, 0, 4) You must figure out how to obtain the regression equation from R. Enter the code below...

The table below shows the stock (i.e. what you have) and final (i.e. what you want)...

The table below shows the stock (i.e. what you have) and final (i.e. what you want) concentrations/quantities for a 25 μl PCR. Item Stock Concentration Amount wanted per 25μl PCR Forward Primer 10 μM 0.4 μM Reverse Primer 10 μM 0.4 μM Buffer (contains dNTPs, polymerase, MgCl2) 2X concentrate 1X DNA 25 ng/μl 25 ng/μl *Use the table to answer the following questions and please show how you got the answer. Thank you! 1. For each 25 μl reaction, what...

Using the data in the table below, calculate the return for investing in the share from...

Using the data in the table below, calculate the return for investing in the share from 1 January to 31 December. Prices are after the dividend has been paid Date Price Dividend Jan 1 $31.53 − Feb 5 $31.11 $0.22 May 14 $30.67 $0.18 Aug 13 $31.78 $0.21 Nov 12 $37.95 $0.22 Dec 31 $40.11 Return for the entire period is ................. %. (Enter your response as a percent rounded to two decimal places.)

Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan...

Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using the APR table, Table 13-1. (Round your answers to the nearest cent.) Amount Financed Number of Payments APR Table Factor Finance Charge Monthly Payment $9,400 36 13% $ $ $

1. Using the information in the table below, calculate the Index of Segregation by occupation. Interpret...

1. Using the information in the table below, calculate the Index of Segregation by occupation. Interpret the index number that you calculated and provide an explanation of it's meaning. Occupation Men Women Managerial 11,005 9,387 Professional and Technical 12,063 13,952 Sales 7,601 6,953 Clerical/Administrative 3,751 14,128 Service 6.465 10,066 Production/Craft 13,516 1,283 Operatives 9,302 3,007 Laborers 3,631 1,011 Total 67,334 59,787 **Note: All numbers are in thousands** 2. Carefully explain the two broad potential causes for the extent of gender...

Calculate the Net Present Value of the cash flows depicted in the table below using a...

Calculate the Net Present Value of the cash flows depicted in the table below using a cost of capital of {r81d}percent. year Cash Flow 0 -60 1 40 2 40 3 0

Based on the table below calculate the cost for patient X using the ratio of cost...

Based on the table below calculate the cost for patient X using the ratio of cost to charge method Billed Calculated Department Charges Cost RCC Charges Cost Med/Surg $42,000,000 $14,000,000 ________ $14,000 ________ ICU $10,000,000 $4,000,000 ________ 0 ________ OR $15,000,000 $6,000,000 ________ $5,000 ________ Respiratory therapy $2,000,000 $1,000,000 ________ $500 ________ Rehab therapy $5,000,000 $2,000,000 ________ $2,000 ________ Clinical Lab $7,000,000 $2,000,000 ________ $2,000 ________ Radiology $8,000,000 $3,000,000 ________ $1,000 ________ Pharmacy $9,000,000 $3,000,000 ________ $1,500 ________ Cardiology $3,000,000...

Question