Homework Answers
| D/A =0.45 |
| E/A=1-D/A=1-0.45=0.55 |
| Equity multiplier=1/(E/A)=1/0.55=1.8182 |
| DUPONT |
| ROE = Net profit margin*total asset turnover*equity multiplier |
| ROE%=0.06*3.2*1.8182 |
| ROE% = 34.91 |
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(2 A firms debt ratio is 45%. The firm had a net profit margin of 6%...
O A firms times intrest earned is 4.5X the firms EBIT is 1,479,000. if the tax...
O A firms times intrest earned is 4.5X the firms EBIT is 1,479,000. if the tax rate is 40% determine the net income. 32 A firms debt ratio is 45%. The firm had anet profit margin of 6% and turned over total assets 13.2 times. what return on equity lis implied by the Dupont breakdown!
the dropdown option for the first question: net profit margin OR operating profit margin // debt...
the
dropdown option for the first question: net profit margin OR
operating profit margin // debt ratio OR equity multiplier.
the dropdown option for the second question: shareholder and
dividend management OR use of debt versus equity financing //
management of its revenues and depreciation methods OR control over
its expenses
9. An analysis of company performance using DuPont analysis A sheaf of papers in his hand, your friend and colleague, Jason, steps into your office and asked the following...
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?
A firm has sales of $1,000,000, a net profit margin of 6%, total assets of $1,200,000,...
A firm has sales of $1,000,000, a net profit margin of 6%, total assets of $1,200,000, and a total debt ratio of 50%. It pays no dividends. The return on equity is ------ 4 percent 5 percent 6 percent 10 percent
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...
Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its...
Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm’s total-debt-to-total-capital ratio was 45.0%. The firm finances using only debt and common equity and its total assets equal total invested capital. Based on the DuPont equation, what was the ROE? DuPont equation: ROE = profit margin * total asset turnover * equity multiplier ROE = (NI / Sales) * (Sales / Total assets) * (Total assets / Total...
9 If we know that a firm has a net profit margin of 4 5%, total...
9
If we know that a firm has a net profit margin of 4 5%, total asset turnover of 0.78, and a fira cial leverage multiplier of 1 46, what is its ROE? What is the advantage to using the DuPont system to calculate ROE over the direct calculation of earmings available for common stockholders divided by common stock equity? The firm's ROE is 11% (Round to two decimal places ) What is the advantage to using the DuPont system...
For fiscal year 2017, Costco Wholesale Corporation (COST) had a net profit margin of 2.08%, asset...
For fiscal year 2017, Costco Wholesale Corporation (COST) had a net profit margin of 2.08%, asset turnover of 3.55, and a book equity multiplier of 3.37. In the same fiscal year, Walmart Inc. had a ROE of 30.05%, a ROA of 15.20%, and a book value of equity of $1.8 Billion. a) Use this data to compute Costco's ROE using the DuPont Identity. [1 point] b) What is Walmart's book value of assets? What is Walmart's book debt-to-equity ratio? (assume...
1) the times interest earned ratio 2) the debt to equity ratio 3) the gross margin...
1) the times interest earned ratio
2) the debt to equity ratio
3) the gross margin percentage
4) the return on total assets (total assets at the beginning
of last hear were 13,070,000)
5) the return on equity(stockholders equity at the beginning
of last year totaled 7,990,250)
no change in common stock over two years
6) ks the companys financial leverage positive ir
negative?
$ 960.000 2,700.000 3.600.000 260.000 7.520.000 9.520.000 $17,040,000 $ 1.200.000 300,000 1.800.000 2.000.000 200.000 5,500,000 9.050.000...
5 ratios.Gross profit percentage, debt to equity ratio, profit margin ratio, rate of return of total...
5 ratios.Gross profit percentage, debt to equity ratio, profit margin ratio, rate of return of total assets and price/earnings ratios for Walmart Inc. and Target Corp?
O A firms times intrest earned is 4.5X the firms EBIT is 1,479,000. if the tax rate is 40% determine the net income. 32 A firms debt ratio is 45%. The firm had anet profit margin of 6% and turned over total assets 13.2 times. what return on equity lis implied by the Dupont breakdown!
the
dropdown option for the first question: net profit margin OR
operating profit margin // debt ratio OR equity multiplier.
the dropdown option for the second question: shareholder and
dividend management OR use of debt versus equity financing //
management of its revenues and depreciation methods OR control over
its expenses
9. An analysis of company performance using DuPont analysis A sheaf of papers in his hand, your friend and colleague, Jason, steps into your office and asked the following...
A firm has sales of $1,000,000, a net profit margin of 6%, total assets of $1,200,000, and a total debt ratio of 50%. It pays no dividends. The return on equity is ------ 4 percent 5 percent 6 percent 10 percent
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...
9
If we know that a firm has a net profit margin of 4 5%, total asset turnover of 0.78, and a fira cial leverage multiplier of 1 46, what is its ROE? What is the advantage to using the DuPont system to calculate ROE over the direct calculation of earmings available for common stockholders divided by common stock equity? The firm's ROE is 11% (Round to two decimal places ) What is the advantage to using the DuPont system...
For fiscal year 2017, Costco Wholesale Corporation (COST) had a net profit margin of 2.08%, asset turnover of 3.55, and a book equity multiplier of 3.37. In the same fiscal year, Walmart Inc. had a ROE of 30.05%, a ROA of 15.20%, and a book value of equity of $1.8 Billion. a) Use this data to compute Costco's ROE using the DuPont Identity. [1 point] b) What is Walmart's book value of assets? What is Walmart's book debt-to-equity ratio? (assume...
1) the times interest earned ratio
2) the debt to equity ratio
3) the gross margin percentage
4) the return on total assets (total assets at the beginning
of last hear were 13,070,000)
5) the return on equity(stockholders equity at the beginning
of last year totaled 7,990,250)
no change in common stock over two years
6) ks the companys financial leverage positive ir
negative?
$ 960.000 2,700.000 3.600.000 260.000 7.520.000 9.520.000 $17,040,000 $ 1.200.000 300,000 1.800.000 2.000.000 200.000 5,500,000 9.050.000...
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