Gardial & Son has an ROA of 8% , a 6 % profit margin, and a return on equity equal to 10 % 1. What is the company's...

Question

Question

Gardial & Son has an ROA of 8% , a 6 % profit margin, and a return on equity equal to 10 % 1. What is the companys total ass

Answer 1

Answer #1

ROA=Net income/Total assets

Net income=0.08*Total assets

Profit margin=Net income/Sales

Net income=0.06*Sales

ROE=Net income/Equity

Net income=0.1*Equity

Total asset turnover=Sales/Total assets

=(Net income/0.06)/(Net income/0.08)

=1.33(Approx).

Equity multiplier=Total assets/equity

=(Net income/0.08)/(Net income/0.1)

=1.25

Add a comment

Answer 2

Similar Homework Help Questions

Problem 3-5 ROE Needham Pharmaceuticals has a profit margin of 3.5% and an equity multiplier of...

Problem 3-5 ROE Needham Pharmaceuticals has a profit margin of 3.5% and an equity multiplier of 1.6. Its sales are $110 million and it has total assets of $60 million. What is its Return on Equity (ROE)? Round your answer to two decimal places. 이 Problem 3-6 DuPont Analysis Gardial & Son has an ROA of 11%, a 3% profit margin, and a return on equity equal to 17%. 1. What is the company's total assets turnover? Round your answer...
5. 6. 7. Question Workspace Check My Work eBook DuPont Analysis Gardial & Son has an...

5. 6. 7. Question Workspace Check My Work eBook DuPont Analysis Gardial & Son has an ROA of 8%, a 4% profit margin, and a return on equity equal to 17%. What is the company's total assets turnover? What is the firm's equity multiplier? Do not round intermediate calculations. Round your answers to two decimal places. Total assets turnover: _____ Equity multiplier: _____
Henderson's Hardware has an ROA of 8%, a 2.5% profit margin, and an ROE of 17%....

Henderson's Hardware has an ROA of 8%, a 2.5% profit margin, and an ROE of 17%. What is its total assets turnover? Round your answer to two decimal places. What is its equity multiplier? Round your answer to two decimal places.

Days Sales Outstanding Greene Sisters has a DSO of 24 days. The company's average daily sales...

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...
DUPONT ANALYSIS Henderson's Hardware has an ROA of 15%, a 3% profit margin, and an ROE...

DUPONT ANALYSIS Henderson's Hardware has an ROA of 15%, a 3% profit margin, and an ROE of 22%. What is its total assets turnover? Round your answer to two decimal places. What is its equity multiplier? Round your answer to two decimal places.
DuPONT ANALYSIS Henderson's Hardware has an ROA of 12%, a 7% profit margin, and an ROE...

DuPONT ANALYSIS Henderson's Hardware has an ROA of 12%, a 7% profit margin, and an ROE of 25% What is its total assets turnover? Round your answer to two decimal places. What is its equity multiplier? Round your answer to two decimal places.

The Cavo Company has an ROA of 10 percent, a profit margin of 12.75 percent, and...

The Cavo Company has an ROA of 10 percent, a profit margin of 12.75 percent, and an ROE of 18.75 percent. What is the company’s total asset turnover? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Total asset turnover times What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Equity multiplier times
Henderson's Hardware has an ROA of 13%, a 5.5% profit margin, and an ROE of 24%....

Henderson's Hardware has an ROA of 13%, a 5.5% profit margin, and an ROE of 24%. What is its total assets turnover? Do not round intermediate calculations. Round your answer to two decimal places. What is its equity multiplier? Do not round intermediate calculations. Round your answer to two decimal places.
DuPONT ANALYSIS Henderson's Hardware has an ROA of 14%, a 3.5% profit margin, and an ROE of 18%. What is its total asset...

DuPONT ANALYSIS Henderson's Hardware has an ROA of 14%, a 3.5% profit margin, and an ROE of 18%. What is its total assets turnover? Round your answer to two decimal places. What is its equity multiplier? Round your answer to two decimal places.

LeCompte Corp. has $312,900 of assets, and it uses only common equity capital (zero debt). Its...

LeCompte Corp. has $312,900 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $720,000, and its net income after taxes was $24,655. Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15%. What profit margin would LeCompte need in order to achieve the 15% ROE, holding everything else constant? Select the correct answer. LeCompte Corp. has $312,900 of...