b.ROE (Return On Equity) is correct answer.
ROE = NET INCOME/EQUITY
owners of a company are equity shareholders,so amount which the owners invested is equity of company.So ROE shows how much income was earned per equity(i.e.,amount which was invested by owners).
The ratio shows how much income was earned for every dollar invested by owners. Th ratio...
The profit margin ratio measures the _______________ earned from each dollar of sales. Operating income Net income Income before taxes Income before interest and taxes
Question 70 The __________________ measures the rate of income earned on the amount invested by stockholders. a. Earnings per Share on Common Stock b. Rate Earned on Total Assets c. Rate Earned on Stockholders Equity d. Rate of net Sales to Assets Question 86 Current Assets total $35,000 and Current Liabilities total $32,000. Of the Current Assets, Cash totals $13,000 and Accounts Receivable, $5,000. What is the Current Ratio? the Quick Ratio? a. Current Ratio=1.09 Quick Ratio=.56 b. Current Ratio=1.09...
Every dollar saved in purchasing is equivalent to a dollar of new income. Material cost-savings have a greater influence on the ROA than do sales increases, therefore it is easier for companies to generate cost-savings than to increase market share. To prove the aforementioned statements, use the given information of ABC Company to calculate your answers for the following questions. (Show your calculations) (20 points) Sales $4,900,000 Labor Cost $600,000 Fixed Assets $3,000,000 Overhead Cost $900,000 Inventories $450,000 Materials Cost...
The asset turnover ratio a. considers how much revenue a firm is able to generate relative to its assets base b. affects the firm's ROE in that a higher ratio increases ROE and a lower ratio decreases ROE other things equal c. captures the capital intensity of a business: the more capital intense a firm is, the lower its asset turnover d. all of the above
2. The statement that shows investments in the firm and the distributions to the owners is the Income statement Balance statement Statement of retained earnings None of the abo a. Statement of Owners' Equity 3. If the profit margin ratio is .10 and net income is.10 then shareholders equity is If the payout is .40 and dividends are 40 then net income is 40/.40 100 The ratio that shows what proportion of the company's net income is paid out to...
AFG Bank has a PM of 10 percent, an interest income to total assets ratio of 4.00 percent, anda noninterest income to assets ratio of 2.50 percent. AFG also has $12 in assets per dollar in equity capital. Estimate AFG's ROE. 1. 2. The First Bank generates $0.0155 dollars of net income per dollar of assets and it has a profit margin of 12.25 percent. How much operating income per dollar of total assets does First Bank generate?
A firm has a debt-equity ratio of .39. For every $1 in assets, how much money did the firm borrow (that is, how much of that $1 is financed with debt)? A. 0.36 B. 0.28 C. 1.39 D. 1.56 E. .64
uppose you earned a $720,000 bonus this year and invested it at 8.25% per year. How much could you withdraw at the end of each of the next 20 years? Select the correct answer. a. $74,708.25 b. $74,713.35 c. $74,703.15 d. $74,723.55 e. $74,718.45
Suppose you earned a $335,000 bonus this year and invested it at 8.25% per year. How much could you withdraw at the end of each of the next 20 years? Select the correct answer. a. $34,746.72 b. $34,741.22 c. $34,752.22 d. $34,757.72 e. $34,735.72
1. Use the following selected 2016 balance sheet and income statement information for Home Garden Supply Co. (in millions) to compute the gross profit percentage to the nearest hundredth of a percent. Net income Gross profit on sales Average total assets Sales Tax rate on operating profit $69,960 $700,400 $360,600 $1,356,504 35% Select one: A. 5.16% B. 9.99% C. 51.63% D. 33.56% 2. Which ratio can provide an indication of the salability of the company's products? Select one: A. Current...