QUESTION 1: Which of the following is NOT one of the components in the DuPont breakdown...
QUESTION 1: Which of the following is NOT one of the components in the DuPont breakdown that determines ROE?
|
profit margin |
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|
total asset turnover |
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|
equity multiplier |
||
|
times interest earned |
QUESTION 3: The firm's book value is
|
the depreciated value of the fixed assets on the firm's books |
||
|
the total equity on the balance sheet |
||
|
the total asset value on the balance sheet |
||
|
the total value of liabilities plus equity on the firm's financial statements |
Homework Answers
1.
Times interest earned
Times interest earned is not a component in the DuPont breakdown. Profit margin, total asset turnover and equity multiplier are the components in the DuPont breakdown.
ROE = Profit margin * total asset turnover * equity multiplier
2.
the total asset value on the balance sheet
The firm's book value is the total asset value on the balance sheet. Other given options are wrong.
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QUESTION 1: Which of the following is NOT one of the components
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The following condensed information was reported by Peabody Toys, Inc., for 2021 and 2020: ($ in...
The following condensed information was reported by Peabody
Toys, Inc., for 2021 and 2020:
($ in thousands)
2021
2020
Income statement information
Net sales
$
6,600
$
5,600
Net income
248
152
Balance sheet information
Current assets
$
940
$
890
Property, plant, and equipment (net)
2,360
2,010
Total assets
$
3,300
$
2,900
Current liabilities
$
1,720
$
1,370
Long-term liabilities
890
890
Common stock
400
400
Retained earnings
290
240
Liabilities and shareholders’ equity
$
3,300
$
2,900...
The firm's book value is the depreciated value of the fixed assets on the firm's books...
The firm's book value is the depreciated value of the fixed assets on the firm's books the total equity on the balance sheet the total asset value on the balance sheet the total value of liabilities plus equity on the firm's financial statements
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the DuPont formula relates return on equit The DuPont formula relates return on equity (= Net...
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9. An analysis of company performance using DuPont analysis Aa Aa Walking down the hall of...
9. An analysis of company performance using DuPont analysis Aa Aa Walking down the hall of your office building with a sheaf of papers in his hand, your friend and colleague, Jason, stepped into your office and asked the following Jason Do you have 10 or 15 minutes that you can spare? You Sure, I've got a meeting in an hour, but I don't want to start something new and then be interrupted by the meeting, so how can I...
7. DuPont equation Corporate decision makers and analysts often use a particular technique, called a DuPont...
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The following condensed information was reported by Peabody
Toys, Inc., for 2021 and 2020:
($ in thousands)
2021
2020
Income statement information
Net sales
$
6,600
$
5,600
Net income
248
152
Balance sheet information
Current assets
$
940
$
890
Property, plant, and equipment (net)
2,360
2,010
Total assets
$
3,300
$
2,900
Current liabilities
$
1,720
$
1,370
Long-term liabilities
890
890
Common stock
400
400
Retained earnings
290
240
Liabilities and shareholders’ equity
$
3,300
$
2,900...
9. An analysis of company performance using DuPont analysis Aa Aa Walking down the hall of your office building with a sheaf of papers in his hand, your friend and colleague, Akira, stepped into your office and asked the following. Akira: Do you have 10 or 15 minutes that you can spare? You: Sure, I've got a meeting in an hour, but I don't want to start something new and then be interrupted by the meeting, s So how can...
Returr The following condensed information was reported by Peabody Toys, Inc., for 2021 and 2020: ($ in thousands) 2021 2020 $ 5,200 180 $ 4,200 124 Income statement information Net sales Net income Balance sheet information Current assets Property, plant, and equipment (net) Total assets Current liabilities Long-term liabilities Common stock Retained earnings Liabilities and shareholders' equity $ 950 $ 1,700 $ 800 1,100 $ 1,900 $ 600 750 400 150 $1,900 450 750 499 190 $ 1,700 Required: 1....
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9. An analysis of company performance using DuPont analysis Aa Aa Walking down the hall of your office building with a sheaf of papers in his hand, your friend and colleague, Jason, stepped into your office and asked the following Jason Do you have 10 or 15 minutes that you can spare? You Sure, I've got a meeting in an hour, but I don't want to start something new and then be interrupted by the meeting, so how can I...
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