Billy Bob Corp.'s sales last year were $4,500,000, its total assets were $1,500,000, common equity was...
Billy Bob Corp.'s sales last year were $4,500,000, its total assets were $1,500,000, common equity was $750,000, total liabilities were $750,000. BBC's ROA was 5.38%, and its equity multiplier (EM) was 2x. What is BBC's ROE? (answer in % format xx.xx to the nearest basis point, with no '%' sign needed.)
Homework Answers
ROA = Net Income / Total Assets
.0538 = Net Income / 1500000
Net Income = 1500000 * .0538
= 80700
Equity Multiplier = total asset / shareholders equity
2 = 1500000 / total equity
shareholders equity = 1500000 /2
= 750000
ROE = net income / shareholders equity
= 80700/750000
= 0.1076
= 10.76%
Add Answer to:
Billy Bob Corp.'s sales last year were $4,500,000, its total
assets were $1,500,000, common equity was...
Billy Bob Corp.'s sales last year were $4,500,000, its total assets were $1,500,000, common equity was...
Billy Bob Corp.'s sales last year were $4,500,000, its total assets were $1,500,000, common equity was $750,000, total liabilities were $750,000. BBC's ROA was 5.38%, and its equity multiplier (EM) was 2x. What is BBC's ROE? (answer in % format xx.xx to the nearest basis point, with no '%' sign needed.)
Billy Bob Corp.'s sales last year were $4,500,000, its total assets were $1,500,000, common equity was...
Billy Bob Corp.'s sales last year were $4,500,000, its total assets were $1,500,000, common equity was $1,000,000, total liabilities were $1,500,000, and its net income after taxes was $360,000. What was its equity multiplier (EM)? (answer in format x.xx , with no 'X' sign needed.)
Billy Bob Corp.'s sales last year were $436,000, its total assets were $1,500,000, common equity was...
Billy Bob Corp.'s sales last year were $436,000, its total assets were $1,500,000, common equity was $1,000,000, and its net income after taxes was $127,000. What was its % return on assets (ROA)? (answer in % format x.xx to the nearest basis point, with no % sign needed.)
Billy Bob Corp.'s sales last year were $12921,000, its total assets were $1,500,000, common equity was...
Billy Bob Corp.'s sales last year were $12921,000, its total assets were $1,500,000, common equity was $1,000,000, and its net income after taxes was $109,000. What was its total asset turnover (TAT)? (answer in format x.xx , with no 'X' sign needed.)
Arshadi Corp.'s sales last year were $67,000, and its total assets were $22,000. What was its...
Arshadi Corp.'s sales last year were $67,000, and its total assets were $22,000. What was its total assets turnover ratio (TATO)? Select the correct answer. Arshadi Corp.'s sales last year were $67,000, and its total assets were $22,000. What was its total assets turnover ratio (TATO)? Select the correct answer. a. 1.85 b. 3.05 c. 3.45 d. 2.25 e. 2.65 Orono Corp.'s sales last year were $585,000, its operating costs were $362,500, and its interest charges were $12,500. What was...
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...
Last year ABC Corp. had sales of $525,000 and a net income of $12,600, and its...
Last year ABC Corp. had sales of $525,000 and a net income of $12,600, and its year-end assets were $100,000. The firm's total-liabilities-to-total-assets ratio was 50.00%. Based on the DuPont equation, what was ABC's ROE? Show your answer in this format: 12.34%
Arshadi Corp.'s sales last year were $65,000, and its total assets were $22,000. What was its...
Arshadi Corp.'s sales last year were $65,000, and its total assets were $22,000. What was its total assets turnover ratio (TATO)? Select the correct answer. a. 3.85 b. 2.95 c. 6.55 d. 4.75 e. 5.65
Maggie's Muffins, Inc., generated $2,000,000 in sales during 2015, and its year-end total assets were $1,500,000....
Maggie's Muffins, Inc., generated $2,000,000 in sales during 2015, and its year-end total assets were $1,500,000. Also, at year-end 2015, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and $200,000 of accruals. Looking ahead to 2016, the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 4%, and its payout ratio will be 45%....
Bull Company's sales last year were $1,325,000, its ROE were 32%, and its total asset turnover...
Bull Company's sales last year were $1,325,000, its ROE were 32%, and its total asset turnover wer 1.12x. Common equity in the firm's balance sheet was 55% of its total assets. What was its net income? $213,696.00 $261,184.00 $170,357.14 $208,214.29
Bull Company's sales last year were $1,325,000, its ROE were 32%, and its total asset turnover wer 1.12x. Common equity in the firm's balance sheet was 55% of its total assets. What was its net income? $213,696.00 $261,184.00 $170,357.14 $208,214.29
Most questions answered within 3 hours.
-
1. Add hydrochloric acid (HCl) to magnesium metal in a test
tube.
Observations: &
asked 8 minutes ago -
Calculate the volume in milliliters of a 1.4 mol/L barium
acetate solution that contains 200.g of...
asked 8 minutes ago -
A consumer can choose between two gambles. The “sure thing”
guaranteesadditional income (I) of $250,000. The...
asked 9 minutes ago -
There are 9 women and 6 men in a department. A committee of four
is to...
asked 11 minutes ago -
Arthur Meiners is the production manager of Wheel-Rite, a small
producer of metal parts. Wheel-Rite supplies...
asked 26 minutes ago -
Company Risk Premium A company has a beta of
4.57. If the market return is expected...
asked 25 minutes ago -
3. Which statement about nuclear fission is correct? (1
point)
A. Nuclear fission provides energy for...
asked 31 minutes ago -
If a $2,000 increase in income leads to a $1,5000 increase in
consumption expenditures, then the...
asked 30 minutes ago -
May you please put this in layman's terms?
ABSTRACT
Coagulase-negative staphylococci (CoNS) and Staphylococcus
aureus are...
asked 35 minutes ago -
If authentic leadership is really a lifelong process,
can teenagers be authentic leaders? Why or why...
asked 51 minutes ago -
Six years of quarterly data of a seasonally adjusted series are
used to estimate a linear...
asked 1 hour ago -
Which of the following is not an ecological model used
to foster behavior change?
PRECEDE-PROCEED Model...
asked 1 hour ago