ZuoTi.Pro
Question

Keller Cosmetics maintains an operating profit margin of 8% and asset turnover ratio of 2. a....

Keller Cosmetics maintains an operating profit margin of 8% and asset turnover ratio of 2. 


a. What is its ROA? 

ROA  = _______ 

b. If its debt-equity ratio is 1, its interest payments and taxes are each $8,700, and EBIT is $23,500, what is its ROE? (Do not round intermediate calculations. 

ROE = _______ 

business   finance   
2 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

✔ Recommended Answer
Answer #1

1 2
Add a comment
Know the answer?
Add Answer to:
Keller Cosmetics maintains an operating profit margin of 8% and asset turnover ratio of 2. a....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • Keller Cosmetics maintains an operating profit margin of 7% and asset turnover ratio of 2. a....

    Keller Cosmetics maintains an operating profit margin of 7% and asset turnover ratio of 2. a. What is its ROA? (Enter your answer as a whole percent.)   ROA % b. If its debt-equity ratio is 1, its interest payments and taxes are each $9,000, and EBIT is $25,000, what is its ROE? (Do not round intermediate calculations. Enter your answer as a whole percent.)   ROE %

  • Keller Cosmetics maintains an operating profit margin of 8% and asset turnover ratio of 5. a....

    Keller Cosmetics maintains an operating profit margin of 8% and asset turnover ratio of 5. a. What is its ROA? Round your answer to 2 decimal places b. If its debt-equity ratio is 1, its interest payments and taxes are each $9,500, and EBIT is $27.500, what is its ROE? (Do not round d your answer to 2 decimal places.)

  • Check my work Problem 4-26 Du Pont Analysis (LO4) Keller Cosmetics maintains an operating profit margin...

    Check my work Problem 4-26 Du Pont Analysis (LO4) Keller Cosmetics maintains an operating profit margin of 7% and asset turnover ratio of 4 a. What is its ROA? (Round your answer to 2 decimal places.) ROA % b. If its debt-equity ratio is 1, its interest payments and taxes are each $8.200, and EBIT is $21,000, what is its ROE? (Do not round intermediate calculations. Round your onswer to 2 decimal places.) % ROE

  • A company remains an operating profit margin of 8% and sales-to-assets ratio (asset turnover ratio) of...

    A company remains an operating profit margin of 8% and sales-to-assets ratio (asset turnover ratio) of 3. It has assets of 2’000’000$ and equity of 1’200’000$. Its long term debt is 800’000$. Interest payments are 120’000$ and the tax rate is 35%. How much is sales? what is the ROA what is the ROE what is the ROC

  • Keller Cosmetics maintains an operating profit margin of 9.00% and...

    Keller Cosmetics maintains an operating profit margin of 9.00% and a sales-to-assets ratio of 3.90. It has assets of $700,000 and equity of $500,000. Assume that interest payments are $50,000 and the tax rate is 30%. a. What is the return on assets? (Enter your answer as a percent rounded to 2 decimal places.)b. What is the return on equity? (Enter your answer as a percent rounded to 2 decimal places.)

  • Croc Gator Removal has a profit margin of 10 percent, total asset turnover of 1.1, and...

    Croc Gator Removal has a profit margin of 10 percent, total asset turnover of 1.1, and ROE of 14.36 percent. What is this firm's debt-equity ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Debt-equity ratio times Levine, Inc., has an ROA of 8.3 percent and a payout ratio of 31 percent. What is its internal growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2...

  • Jack Corp. has a profit margin of 5.9 percent, total asset turnover of 1.6, and ROE...

    Jack Corp. has a profit margin of 5.9 percent, total asset turnover of 1.6, and ROE of 20.44 percent. What is this firm's debt-equity ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Debt-equity ratio

  • Jack Corp. has a profit margin of 5.5 percent, total asset turnover of 1.9, and ROE...

    Jack Corp. has a profit margin of 5.5 percent, total asset turnover of 1.9, and ROE of 20.04 percent. What is this firm’s debt-equity ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  • 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...

  • Financial Ratio 2 - Interpretation Debt: Interest Coverage Ratio [ EBIT/int. exp] : - would it...

    Financial Ratio 2 - Interpretation Debt: Interest Coverage Ratio [ EBIT/int. exp] : - would it make sense to use the cash version of EBIT? Return on Assets [operating return on assets = ROA = operating Profits / Total Assets] - Any linkage between ROA and Valuation equation [ V0 = CF/(1+r)^t ] ? Operating Profit Margin [OPM = EBIT/ SALES]: - what pictures of operating efficiency do ROA and OPM give to us? Asset Turnover [Sales/ Assets] This is...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT