Question

In: Finance

Dp Jones had a profit margin of 0.05,total assets turnover of 1.7, and an equity multipler...

Dp Jones had a profit margin of 0.05,total assets turnover of 1.7, and an equity multipler of 3.0. Calculate DP Jones return on common equity

Solutions

Expert Solution


Related Solutions

AA had a profit margin of 8%, a total assets turnover of 1.5 and an equity...
AA had a profit margin of 8%, a total assets turnover of 1.5 and an equity multiplier of 1.8. 1. Calculate company's ROE . 2. What can you say about this ROE if ROE's Industry Average is 15%
Calculate ROE given the following information: profit margin = 20%; total asset turnover = 0.64; equity...
Calculate ROE given the following information: profit margin = 20%; total asset turnover = 0.64; equity multiplier = 1.50.
Last year Blease Inc had a total assets turnover of 1.33 and an equity multiplier of...
Last year Blease Inc had a total assets turnover of 1.33 and an equity multiplier of 1.75. Its sales were $355,000 and its net income was $10,600. The firm finances using only debt and common equity, and its total assets equal total invested capital. The CFO believes that the company could have operated more efficiently, lowered its costs, and increased its net income by $10,250 without changing its sales, assets, or capital structure. Had it cut costs and increased its...
Acme Inc had a total assets turnover of 1.39 and an equity multiplier of 1.75. Although...
Acme Inc had a total assets turnover of 1.39 and an equity multiplier of 1.75. Although it had net income of $11,000 on $295,000 of sales, a private equity firm thinks it could have had a net income $10,750 greater just by cutting costs. If this is possible, how much greater would be the return on equity? (Hint: DuPont!) 8.47% 8.86% 8.09% 9.27% 8.82%
Last year Blease Inc had a total assets turnover of 1.33 and an equity multiplier of...
Last year Blease Inc had a total assets turnover of 1.33 and an equity multiplier of 1.75. Its sales were $205,000 and its net income was $10,600. The firm finances using only debt and common equity and its total assets equal total invested capital. The CFO believes that the company could have operated more efficiently, lowered its costs, and increased its net income by $10,250 without changing its sales, assets, or capital structure. Had it cut costs and increased its...
Last year Mason Inc. had a total assets turnover of 1.33 and an equity multiplier of...
Last year Mason Inc. had a total assets turnover of 1.33 and an equity multiplier of 1.75. Its sales were $150,000 and its net income was $10,549. The CFO believes that the company could have operated more efficiently, lowered its costs, and increased its net income by $5,250 without changing its sales, assets, or capital structure. Had it cut costs and increased its net income in this amount, by how much would the ROE have changed? Select the correct answer....
Return on Equity (ROE)= Sales Margin* Asset turnover* Gearing ratio ROE= Profit/equity Sales Margin= Profit/Sales Asset...
Return on Equity (ROE)= Sales Margin* Asset turnover* Gearing ratio ROE= Profit/equity Sales Margin= Profit/Sales Asset turnover= Sales/Assets Gearing Ratio= Assets/Equity This formula is important from strategy point of view as higher ROE is possible in a low profit margin business by increasing the asset turnover and by taking debt to increase the capital employed. This Question I need it to answer ---> "good very high level summary of the ratios in this DQ. Can you provide back to me...
Assume the following ratios are constant: Total asset turnover 2.2 Profit margin 7.5%   Equity multiplier 1.4...
Assume the following ratios are constant: Total asset turnover 2.2 Profit margin 7.5%   Equity multiplier 1.4 Payout ratio 30% What is the sustainable growth rate? (in %) (round 4 decimals)
Consider the following financial data for J. White Industries: Total assets turnover: 1.8 Gross profit margin...
Consider the following financial data for J. White Industries: Total assets turnover: 1.8 Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 29% Total liabilities-to-assets ratio: 45% Quick ratio: 1.05 Days sales outstanding (based on 365-day year): 33 days Inventory turnover ratio: 5.0 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet Complete the balance sheet and sales information...
1. The firm, MBI, has Total Assets of $190,000, Equity of $100,000, Net Profit Margin of...
1. The firm, MBI, has Total Assets of $190,000, Equity of $100,000, Net Profit Margin of 3.7 percent, Total Asset Turnover of 2.89. Calculate the firm’s Return on Equity, ROE (Hint: Use DuPont Identity). If the firm increases its debt-equity ratio will the ROE increase or decrease? 20.32 percent, increase 20.32 percent, decrease 38.99 percent, increase 38.99 percent, decrease 5.67 percent, increase 2. A firm has Net Income of $60,800 and has Total Assets of $601,991. The firm’s payout ratio...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT