Little’s Inc. provides a 10% return on equity. Sales are $100,000 on total assets of $140,000...

Little’s Inc. provides a 10% return on equity. Sales are $100,000 on total assets of $140,000 and total equity of $85,000. What is the profit margin?

Select one:

a. 6.07%

b. 8.50%

c. 10.00%

d. 11.77%

e. None of the above.

Expert Solution

jeff jeffy answered 2 years ago

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?

Dearborn Supplies has total sales of $191 million, assets of $95 million, a return on equity...

Dearborn Supplies has total sales of $191 million, assets of $95 million, a return on equity of 32 percent, and a net profit margin of 7.3 percent. What is the firms debt ratio? The company's debt ratio is what percent? Round to one decimal place.

A firm’s Total Assets equals $10,000,000, and Total Equity equals $3,000,000. If its Return on Assets...

A firm’s Total Assets equals $10,000,000, and Total Equity equals $3,000,000. If its Return on Assets equals 10%, then what is its Earnings After Taxes? a. $700,000 b. need to know what its Revenues are c. $300,000 d. $1,000,000

Assets total $100,000 and liabilities total $20,000. What is the equity of the business? $800 $8,000 ...

Assets total $100,000 and liabilities total $20,000. What is the equity of the business? $800 $8,000 $80,000 $88,000 None of the above If during the accounting period the assets decreased by $10,000, and equity increased by $2,000, then how did liabilities change? Increased by $12,000 Increased by $8,000 Decreased by $12,000 Decreased by $8,000 Decreased by $6,000 If during the accounting period the assets increased by $14,000, and equity increased by $4,000, then how did liabilities change? Increased by $10,000 ...

1. ABC company has current year total asset of $140,000, intangible assets of 55,000, equity of...

1. ABC company has current year total asset of $140,000, intangible assets of 55,000, equity of $95,000. Considering only for the fact that ABC company last year leverage ratio was 0.48, will the bank feel more comfortable lending the ABC company this year? Group of answer choices Yes, because the leverage ratio is higher No, because the leverage ratio is higher Yes, because the leverage ratio is lower No, because the leverage ratio is lower 2. Which of the following...

Y3K, Inc., has sales of $4,600, total assets of $3,430, and adebt-equity ratio of 1.50....

Y3K, Inc., has sales of $4,600, total assets of $3,430, and a debt-equity ratio of 1.50. If its return on equity is 19 percent, what its net income?

Holly, Inc. has sales of $292,510, total assets of $420,400, a debt-equity ratio of 1.2, and...

Holly, Inc. has sales of $292,510, total assets of $420,400, a debt-equity ratio of 1.2, and a profit margin of 7.5 percent. What is the equity multiplier? 1.6 2.6 1.2 2.2 Thyme, Inc. has total assets of $72,000, a debt-equity ratio of 0.8, and net income of $7,700. What is the return on equity? 27.78 percent 24.14 percent 22.56 percent 19.25 percent Ferns, Inc. paid $14,000 in dividends and $10,300 in interest over the past year. Sales totaled $139,700 with...

Y3K, Inc., has sales of $4,500, total assets of $3,300, and a debt?equity ratio of 1.50....

Y3K, Inc., has sales of $4,500, total assets of $3,300, and a debt?equity ratio of 1.50. If its return on equity is 17 percent, what its net income? rev: 09_17_2012 $561.00 $164.56 $765.00 $224.40 $59.84

Y3K, Inc., has sales of $7,565, total assets of $3,570, and a debt–equity ratio of .43....

Y3K, Inc., has sales of $7,565, total assets of $3,570, and a debt–equity ratio of .43. Assume the return on equity is 13 percent. 1.What is the company's equity multiplier? Equity multiplier times _______ 2.What is the company's total asset turnover? Total asset turnover times _____ 3.What is the company's profit margin? Profit margin _____% 4.What is the company's net income? Net income $_______

Gutweed, Inc. has total equity of $133,000 and total assets of$225,000. What is the debt-equity...

Gutweed, Inc. has total equity of $133,000 and total assets of $225,000. What is the debt-equity ratio?0.970.820.690.76Fennel, Inc. has inventory of $2,200, current liabilities of $3,100, cash of $1,900, and accounts receivable of $3,900. What is the cash ratio?0.450.610.720.53

Question