Return on equity = profit margin*Asset turnover * Equity multiplier | |||||||
18.40% =profit margin *3.5*2.1 | |||||||
Profit margin = 18.40/7.35 | |||||||
Profit margin = 2.50% | |||||||
Correct Option: 2.5% | |||||||
Saved Help Save & Exit A company reports return on equity of 18.4%, asset turnover of...
A company reports return on equity of 18.4%, asset turnover of 3.5, and an equity multiplier of 2.1. Using the Dupont framework, compute the company’s profit margin.
All answers must be entererd as formulas two different questions CHAPTER 3 Saved Help Save & Exit Submit E F G If Roten Rooters, Inc., has an equity multiplier of 1.15, total asset turnover of 2.10, and a profit margin of 6.1 percent, what is its ROE? 1.15 Equity multiplier Total asset turnover Profit margin 2.10 6.10% Complete the following analysis. Do not hard code values in your calculations. Return on equity CHAPTER 3 Saved Help Save & Exit Submit...
the DuPont formula relates return on equit The DuPont formula relates return on equity (= Net income, - Stockholders equity) to the company's net profit margin (= Net income Sales), asset turnover (= Sales + Total assets), and equity multiplier (= Total assets + Stockholders equity). This Company is in an industry where the average net profit margin is 6.19%, the debt-to-asset ratio (= Debt + Total assets) is 27.9%, and return on equity is 20.22%. Find below the Company's...
Assignment 0 Saved Saved Help Save & Exit Which of the following is not an advantage of debt financing? Multiple Choice Interest is tax deductible. O The cost of borrowing may be lower than the return on equity. o The ownership interest of current stockholders is unchanged. o Debt financing often has no maturity date.
A firm has a return on equity of 23 percent. The total asset turnover is 2.2 and the profit margin is 6 percent. The total equity is $5,600. What is the net income? Multiple Choice $739 $2,834 $336 $1,288 $585
Assignment Saved Help Save & Exit Sub A company leases an office building for 24 months. At the beginning of the lease period, the lessee (user) would: Multiple Choice Record a lease asset. O Record a lease liability. O Record a lease for the present value of the 24 lease payments. O All of the answers are correct. < Prev 37 of 90 Next >
If Roten Rooters, Inc., has an equity multiplier of 1.26, total asset turnover of 1.30, and a profit margin of 6.50 percent. What is its ROE? Multiple Choice: -2.20% 11.71% 10.65% 10.22% 9.58%
mework Saved Help Save & Exit Sub Check my wo Problem 13-4A Calculating financial statement ratios LO P3 Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $50,900; total assets, $209,400; common stock, $83,000; and retained earnings, $43,558.) CABOT CORPORATION Income Statement For Current Year Ended December 31 $ 453,600 297,950 155,650 99,000 4,500 52,150 21,008 Sales Cost of goods sold Gross...
Saved Help Save & Exit Jubilee, Inc., owns 20 percent of JPW Company and applies the equity method. During the current year, Jubilee buys inventory costing $116,350 and then sells it to JPW for $179 000. At the end of the year, JPW still holds only $24,700 of merchandise. What amount of gross profit must Jubilee defer in reporting this investment sing the equity method? Multiple Choice $10.429 $8,629. $1,729 $6.229 < Prev 2 of 8 Next >
Saved Help Save & Exit Su Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit, selected balance sheet amounts at December 31 of the prior year were inventory, $49,900 total assets. $209,400, common stock, 587000, and retained earnings, $34.772) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 447,600 Cost of goods sold 297,850 Gross profit 149,750 Operating expenses 99,320 Interest expense 4,100 Income before taxes 46,35e Income tax expense 18,672 Net...