A firm has a debt-to-equity ratio of 1.4, a profit margin of 15%, $600,000 in debt...
A firm has a debt-to-equity ratio of 1.4, a profit margin of 15%, $600,000 in debt with an interest rate of 10%, EBIT of $220,000, and a tax rate of 30%. a. What is the firm’s total asset turnover? b. What is the firm’s times interest earned? c. What is the firm’s return on equity?
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A firm has a debt-to-equity ratio of 1.4, a profit margin of
15%, $600,000 in debt...
Problem 4-6: DuPont and ROE A firm has a profit margin of 2% and an equity...
Problem 4-6: DuPont and ROE A firm has a profit margin of 2% and an equity multiplier of 2.0. Its sales are $100 million, and it has total assets of $50 million. What is its ROE? Problem 4-13: Return on equity Midwest Packaging's ROE last year was only 3%, but its management has developed a new operating plant that calls for a total debt ratio of 60%, which will result in annual interest charges of $300,000. Management projects an EBIT...
1. A firm has a profit margin of 3% and an equity multiplier of 2.0. Its...
1. A firm has a profit margin of 3% and an equity multiplier of 2.0. Its sales are $500 million, and it has total assets of $150 million. What is its ROE? Do not round intermediate calculations. Round your answer to two decimal places. % 2. Baker Industries’ net income is $26,000, its interest expense is $5,000, and its tax rate is 45%. Its notes payable equals $23,000, long-term debt equals $80,000, and common equity equals $250,000. The firm finances...
10) For the year just ended, a firm with $1 million in assets had a total...
10) For the year just ended, a firm with $1 million in assets had a total asset turnover ratio of 4.4, EBIT of $380,000, a 30% tax rate, and $300,000 in debt. The interest rate on the debt is 8% per year. Calculate the firm’s profit margin and its ROE.
Ivan Industries (II) has a debt-to-equity ratio of 1.4, a corporate tax rate of 30%, pays...
Ivan Industries (II) has a debt-to-equity ratio of 1.4, a corporate tax rate of 30%, pays 4% interest on its debt and has a required rate of return on equity of 12%. What is II’s WACC? How much does the debt tax shield reduce II’s WACC? What is the required rate of return on firm assets?
The Green Giant has a 7 percent profit margin and a 38 percent divided payout ratio....
The Green Giant has a 7 percent profit margin and a 38 percent divided payout ratio. the total asset turnover is 1.3 times and the equity multiplier is 1.4 times. what is the sustainable rate if growth?
Ferris has a profit margin of 7.5%, an asset turnover of 1.25, debt to equity ratio...
Ferris has a profit margin of 7.5%, an asset turnover of 1.25, debt to equity ratio of 1.3. What is their ROE? Hint Use the DuPont chain
The debt equity ratio of a firm is 0.6. The total asset turnover is 1.40 and...
The debt equity ratio of a firm is 0.6. The total asset turnover is 1.40 and the profit margin is 12%. Total equity is $4,800. What is net income?
A firm has sales of $500,000, a debt-to-equity ratio of one, and total assets of $1,000,000....
A firm has sales of $500,000, a debt-to-equity ratio of one, and total assets of $1,000,000. If its profit margin is 5%, what is the firm’s return on equity? a) 3.3% b) 6.7 % c) 5.0 % d) 2.5 % e) Further information is needed,
1.What is the return on assets (ROA) for a firm that has a debt ratio of...
1.What is the return on assets (ROA) for a firm that has a debt ratio of 0.65, a net profit margin of 6.5%, sales of $740,000, and a total asset turnover of 4? 2. Thompson Corp has a NPM of 11.5%. They reported earnings after tax of $632,500. If they had net fixed assets of $1,500,000 and current assets of $750,000, what are their total asset turnover ratios?
A firm has a debt-to-asset ratio of 30% (based on the market value of assets). The...
A firm has a debt-to-asset ratio of 30% (based on the market value of assets). The firm’s bondholders require a return of 4.50%, and the equity holders require a return of 9%. The firm’s marginal tax-rate is 21%. Estimate the firm’s Weighted-Average-Cost-of-Capital (WACC).
Problem 4-6: DuPont and ROE A firm has a profit margin of 2% and an equity multiplier of 2.0. Its sales are $100 million, and it has total assets of $50 million. What is its ROE? Problem 4-13: Return on equity Midwest Packaging's ROE last year was only 3%, but its management has developed a new operating plant that calls for a total debt ratio of 60%, which will result in annual interest charges of $300,000. Management projects an EBIT...
The debt equity ratio of a firm is 0.6. The total asset turnover is 1.40 and the profit margin is 12%. Total equity is $4,800. What is net income?
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