Homework Answers
Let Equity be x
Net Income=4.2%*x
Debt=0.5x
Assets=1.5x
Interest=0.5x*5%=0.025x
EBIT=Net Income/(1-tax
rate)+Interest=4.2%*x/(1-35%)+0.025x=0.0896x
Assets=1.5x
RoA=0.0896/1.5=5.9733%
Add Answer to:
I've posted many time I need belp please. thank you Problem 19-13 A firm has an ROE of 4.2%, a debt-to-equity r...
Problem 19-13 A firm has an ROE of 4.2%, a debt-to-equity ratio of 0.5, and a...
Problem 19-13 A firm has an ROE of 4.2%, a debt-to-equity ratio of 0.5, and a tax rate of 35% and pays an interest rate of 5% on its debt. What is its operating ROA? (Do not round intermediate calculations. Round your answer to 2 decimal places.) ROA
Problem 19-13 A firm has an ROE of 4.8 % , a debt-to-equity ratio of 0.6,...
Problem 19-13 A firm has an ROE of 4.8 % , a debt-to-equity ratio of 0.6, and a tax rate of 35% and pays an interest rate of 8% on its debt. What is its operating ROA? (Do not round intermediate calculations. Round your answer to 2 deci mal places.) ROA %
A firm has an ROE of 5%, a debt/equity ratio of 0.5, a tax rate of...
A firm has an ROE of 5%, a debt/equity ratio of 0.5, a tax rate of 35%, and pays an interest rate of 7% on its debt. What is its operating ROA? (Do not round intermediate calculations. Round your answer to 2 decimal places.) % ROA
Problem 14-13 18 A firm has an ROE of 2%, a debt/equity ratio of 0.4, a...
Problem 14-13 18 A firm has an ROE of 2%, a debt/equity ratio of 0.4, a tax rate of 40%, and pays an interest rate of 7% on its debt. What is its operating ROA? (Do not round intermediate calculations.Round your answer to 2 decimal places.) ROA points Skipped
A firm has an ROE of 3.9%, a debt-to-equity ratio of 0.8, and a tax rate...
A firm has an ROE of 3.9%, a debt-to-equity ratio of 0.8, and a tax rate of 40% and pays an interest rate of 7% on its debt. What is its operating ROA? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Hello, please advise, thank you #1 For the problem below: For Profit margin I got 2%...
Hello, please advise, thank you
#1 For the problem below: For Profit margin I got 2% and
it was right but debt to capital ratio I put 50% it was wrong and
1.63 was also wrong.
#2 I was lost here
#3 Is this right:
Assume the following relationships for the Caulder Corp.: Sales/Total assets 2x Return on assets (ROA) 4.0% Return on equity (ROE) 13.0% Calculate Caulder's profit margin and debt-to-capital ratio assuming the firm uses only debt and...
1. A firm has a profit margin of 3% and an equity multiplier of 2.0. Its...
1. A firm has a profit margin of 3% and an equity multiplier of 2.0. Its sales are $500 million, and it has total assets of $150 million. What is its ROE? Do not round intermediate calculations. Round your answer to two decimal places. % 2. Baker Industries’ net income is $26,000, its interest expense is $5,000, and its tax rate is 45%. Its notes payable equals $23,000, long-term debt equals $80,000, and common equity equals $250,000. The firm finances...
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...
Your firm has an ROE of 11 7%, a payout ratio of 26%. S629, 700 of stockholders' equity, and S430,000 of debt sustainable growth rate this year, how much additional debt will you need to issu...
Your firm has an ROE of 11 7%, a payout ratio of 26%. S629, 700 of stockholders' equity, and S430,000 of debt sustainable growth rate this year, how much additional debt will you need to issue? t you grow at your The Tax cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation...
please answer both questions 567 4.14 Pacific Packaging's ROE last year was only 4%; but its management has de...
please answer both questions
567 4.14 Pacific Packaging's ROE last year was only 4%; but its management has developed a new operating plan that calls for a debt-to-capital ratio of 45%, which will result in a $540,000. The firm has no plans to use preferred stock and total assets equal total invested capital. Management projects an EBIT of $1,278,000 on sales of $18,000,000, and it expects to have a total assets turnover ratio of 3.6. Under these conditions, the tax...
Problem 19-13 A firm has an ROE of 4.2%, a debt-to-equity ratio of 0.5, and a tax rate of 35% and pays an interest rate of 5% on its debt. What is its operating ROA? (Do not round intermediate calculations. Round your answer to 2 decimal places.) ROA
Problem 19-13 A firm has an ROE of 4.8 % , a debt-to-equity ratio of 0.6, and a tax rate of 35% and pays an interest rate of 8% on its debt. What is its operating ROA? (Do not round intermediate calculations. Round your answer to 2 deci mal places.) ROA %
A firm has an ROE of 5%, a debt/equity ratio of 0.5, a tax rate of 35%, and pays an interest rate of 7% on its debt. What is its operating ROA? (Do not round intermediate calculations. Round your answer to 2 decimal places.) % ROA
Problem 14-13 18 A firm has an ROE of 2%, a debt/equity ratio of 0.4, a tax rate of 40%, and pays an interest rate of 7% on its debt. What is its operating ROA? (Do not round intermediate calculations.Round your answer to 2 decimal places.) ROA points Skipped
Hello, please advise, thank you
#1 For the problem below: For Profit margin I got 2% and
it was right but debt to capital ratio I put 50% it was wrong and
1.63 was also wrong.
#2 I was lost here
#3 Is this right:
Assume the following relationships for the Caulder Corp.: Sales/Total assets 2x Return on assets (ROA) 4.0% Return on equity (ROE) 13.0% Calculate Caulder's profit margin and debt-to-capital ratio assuming the firm uses only debt and...
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...
Your firm has an ROE of 11 7%, a payout ratio of 26%. S629, 700 of stockholders' equity, and S430,000 of debt sustainable growth rate this year, how much additional debt will you need to issue? t you grow at your The Tax cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation...
please answer both questions
567 4.14 Pacific Packaging's ROE last year was only 4%; but its management has developed a new operating plan that calls for a debt-to-capital ratio of 45%, which will result in a $540,000. The firm has no plans to use preferred stock and total assets equal total invested capital. Management projects an EBIT of $1,278,000 on sales of $18,000,000, and it expects to have a total assets turnover ratio of 3.6. Under these conditions, the tax...
Most questions answered within 3 hours.
-
4. Determine the theoretical yield of P2O5, when 3.07 g of P
reacts with 6.09 g...
asked 1 hour ago -
Explain the PEST analysis and how a marketer would use this when
putting together a marketing...
asked 1 hour ago -
S sells property with a $500 basis to B for $450, and B later
sells the...
asked 2 hours ago -
True/False Questions
1.
In interpreting an agreement, courts generally apply a
subjective standard.
2.
If, after...
asked 1 hour ago -
On January 1, 20X7, Green Corp. paid $1,020,000 to acquire Wax
Co. Wax maintained separate incorporation....
asked 2 hours ago -
C++
Write a class Fraction that defines adding, subtracting,
multiplying, and dividing fractions by overloading standard...
asked 3 hours ago -
This java code won't run and I can't figure out the problem with
it. Please help...
asked 4 hours ago -
Trace the following recursive methods:
a) isPal with the string “abccda”
b) isAnBn with the string...
asked 5 hours ago -
1. Which of the following is false about photosynthesis?
A. ATP is the molecule used to...
asked 6 hours ago -
A simple random sample of size n=64 is obtained from a
population with a mean of...
asked 7 hours ago -
(2 dimensions, 1 object, 2 accelerations)
1) A projectile is thrown with a wind. The wind...
asked 8 hours ago -
Brian makes $34,100 per year. How much can Brian expect to
contribute to FICA taxes in...
asked 8 hours ago