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?
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
What is the return on equity for a bank that has an equity
multiplier of 10, an interest expense ratio of 5%, and a return on
assets of 2%? 1) 15.4% 2) 9.1% 3) 11.8% 4) 20.0% 5) 7.0%
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...
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 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.
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.
Brown and CO. has total equity of $64,800. There are 15,000
shares of stock outstanding at a market price of $11.66 a share.
What is the market-to-book ratio?
Equity Multiplier (EM) is calculated by Dividing Total
Assets bt the Total Equity of the Firm.
This Ratio is called EM, Because:
There is no Reason to call it Equity Multiplier (EM) -
It just shows the Total Assets in $ are so many times the Total
Amount of Equity in $ (TE) of the Firm.
When we Multiply by the Total Asset
Turnover (TATO of the Firm, we get Return on
Equity (ROE)
When we Multiply by the Profit Margin (PM) of...
Abacus Co. wishes to maintain a growth rate of 14 percent a
year, a debt–equity ratio of 1.4, and a dividend payout ratio of 26
percent. The ratio of total assets to sales is constant at 0.8.
What profit margin must the firm achieve? (in %) (round 2
decimal places)