Question

Please format answers in an excel worksheet or make it in an excel worksheet format so that I can follow the example. Thank you so much.

[EXCEL] Leverage ratios: Norton Company has a debt-to-equity ratio of 1.65, ROA of 11.3 percent, and total equity of $1,322,796. What are the company's equity multiplier, debt ratio, and ROE?

[EXCEL] DuPont equation: The Rangoon Timber Company has the following ratios:

What are Rangoon's profit margin and debt ratios?

[EXCEL] DuPont Equation: Lemmon Enterprises has a total asset turnover of 2.1 and a net profit margin of 7.5%. If its equity multiplier is 1.90, what is the ROE for Lemmon Enterprises?

Answer 1

1)
	Debt To Equity Ratio = Total Debt / Total Equity
	1.65 = Total Debt/ $1322796
	Total Debt =$2182613
	Total Asstes = Total Debt + Equity
		=$2182613+1322796
		=$3505409
	Equity Multipler = Total Assets / Equity
	=$3505409/1322796
	=2.65 times
	Debt Ratio = Total Debt / Total Asstes
		=$2182613/3505409
		=62.26%
	ROA = Net Income / Assets
	11.30% = Net Income /3505409
	Net Income =$396111
	ROE= Net Income / Equity
	=$396111/1322796
	29.94%
2)	ROA = Profit Margin * Asset Turnover
	9.69%= Profit Margin *2.23
	=$4.35%
	ROE=Profit Margin *ROA* Debt Ratio
	16.4 =$4.35*9.69* Debt Ratio
		4.34529148
	Debt Ratio =38.95%
3)
	ROE = Profit Margin* Asset Turnover * Equity Multiplier
	=7.5%*2.1*1.90
	=29.93%
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