1.Profit margin(PM)=Net Income/Sales |
Given, |
Asset Turnover(ATO)=Sales/Total assets=1.9 |
ROA=Net Income/Total assets=4% |
ROE=Net income/Total Equity= 7% |
We know, |
ROA=PM*ATO |
ie.Net Income/Total assets=(Net Income/Sales)*(Sales/Total assets) |
ie.4%=PM*1.9 |
So,PM=4%/1.9= |
2.11% |
2..Liabilities-to-assets |
to find the above we need to calcualte the FL , using the DuPont equation & the given ratios as follows: |
Financial leverage(FL)=Total assets/Total equity |
ie. ROE=PM*ATO*FL |
ie. 7%=2.11%*1.9*FL |
SO, FL=7%/(2.11%*1.9)= |
1.75 |
Total assets=1.75 times Total equity |
So,Total liabilities = 1.75-1= 0.75 |
Liabilities-to-assets=0.75/1.75= |
0.4286 |
ie. |
42.86% |
3. Debt- to- assets : |
42.86%/2= |
21.43% |
Problem 3-8 Profit Margin and Debt Ratio Assume you are given the following relationships for the...
Problem 3-8 Profit Margin and Debt Ratio Assume you are given the following relationships for the Haslam Corporation: Sales/total assets 1.7 Return on assets (ROA) 4% Return on equity (ROE) 8% 1.Calculate Haslam's profit margin. Do not round intermediate calculations. Round your answer to two decimal places. % 2.Calculate Haslam's liabilities-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places. % 3.Suppose half of Haslam's liabilities are in the form of debt. Calculate the debt-to-assets ratio....
Profit Margin and Debt Ratio Assume you are given the following relationships for the Haslam Corporation: Sales/total assets 2 Return on assets (ROA) 4% Return on equity (ROE) 7% Calculate Haslam's profit margin. Do not round intermediate calculations. Round your answer to two decimal places. % Calculate Haslam's liabilities-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places. % Suppose half of Haslam's liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not...
Profit Margin and Debt Ratio Assume you are given the following relationships for the Haslam Corporation: Sales/total assets 1.4 Return on assets (ROA) 3% Return on equity (ROE) 5% 1-Calculate Haslam's profit margin. Do not round intermediate calculations. Round your answer to two decimal places. 2-Calculate Haslam's liabilities-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places. 3-Suppose half of Haslam's liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not round intermediate...
Profit Margin and Debt Ratio Assume you are given the following relationships for the Haslam Corporation: Sales/total assets 1.4 Return on assets (ROA) 3% Return on equity (ROE) 5% Calculate Haslam's profit margin. Do not round intermediate calculations. Round your answer to two decimal places. % Calculate Haslam's liabilities-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places. % Suppose half of Haslam's liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not...
Profit Margin and Debt Ratio Assume you are given the following relationships for the Haslam Corporation: Sales/total assets 2.4 Return on assets (ROA) 3% Return on equity (ROE) 6% Calculate Haslam's profit margin. Do not round intermediate calculations. Round your answer to two decimal places. % Calculate Haslam's liabilities-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places. % Suppose half of Haslam's liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not...
Profit Margin and Debt Ratio Assume you are given the following relationships for the Haslam Corporation: Sales/total assets 1.4 Return on assets (ROA) 3% Return on equity (ROE) 8% 1. Calculate Haslam's profit margin. Do not round intermediate calculations. Round your answer to two decimal places. 2.14 % 2. Calculate Haslam's liabilities-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places. 3. Suppose half of Haslam's liabilities are in the form of debt. Calculate the debt-to-assets...
1.5 Profit Margin and Debt Ratio Assume you are given the following relationships for the Haslam Corporation: Sales/total assets Return on assets (ROA) 2% Return on equity (ROE) 1. Calculate Haslam's profit margin. Do not round intermediate calculations. Round your answer to two decimal places. 5% % 2. Calculate Haslam's liabilities-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places. % 3. Suppose half of Haslam's liabilities are in the form of debt. Calculate the debt-to-assets...
Profit Margin and Debt Ratio Assume you are given the following relationships for the Haslam Corporation: Sales/total assets Return on assets (ROA) Return on equity (ROE) 1.2 3% 5% Calculate Haslam's profit margin and liabilities-to-assets ratio. Do not round intermediate calculations. Round your answers to two decimal places. Profit margin: Liabilities-to-assets ratio: % Suppose half of its liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places.
. NEED ANSWER ASAP / ANSWER NEVER USED BEFORE, COMPLETELY NEW ANSWER PLEASE Profit Margin and Debt Ratio Assume you are given the following relationships for the Haslam Corporation: Sales/total assets 1.8 Return on assets (ROA) 4% Return on equity (ROE) 5% Calculate Haslam's profit margin and liabilities-to-assets ratio. Do not round intermediate calculations. Round your answers to two decimal places. a.) Profit margin: % ? b.) Liabilities-to-assets ratio: % ? c.) Suppose half of its liabilities are in the form of...
Days Sales Outstanding Greene Sisters has a DSO of 24 days. The company's average daily sales are $44,000. What is the level of its accounts receivable? Assume there are 365 days in a year. $ ----------------------------------------------- 2- Debt Ratio Vigo Vacations has $205 million in total assets, $5.0 million in notes payable, and $25.5 million in long-term debt. What is the debt ratio? Round your answer to two decimal places. % --------------------------------------- 3- ROE Needham Pharmaceuticals has a profit margin...