Question

24. If a firm’s net profit margin is 10.1%, asset turnover is 1, and the debt...

24. If a firm’s net profit margin is 10.1%, asset turnover is 1, and the debt ratio is 0.78, what is the firm’s return on equity (ROE)? Round to the nearest 0.1%, drop the % symbol. E.g., if your answer is 25.74%, record it as 25.7.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
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

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider a firm with a net profit margin of 4.2%, a total asset turnover of 1.4,...
Consider a firm with a net profit margin of 4.2%, a total asset turnover of 1.4, total assets of $40 million, and a book value of equity of 20 million. What is the firm’s current ROE? If the firm increased its net profit margin to 5%, what should be its ROE? What would be the effect of buying back 5 million of equity with new debt? What would be its new ROE?
Vintage, Inc. has a total asset turnover of 0.64 and a net profit margin of 3.23...
Vintage, Inc. has a total asset turnover of 0.64 and a net profit margin of 3.23 percent. The total assets to equity ratio for the firm is 2.0. Calculate Vintage’s return on equity.
Consider a retail firm with a net profit margin of 3.74 %​, a total asset turnover...
Consider a retail firm with a net profit margin of 3.74 %​, a total asset turnover of 1.88​, total assets of $ 43.4 ​million, and a book value of equity of $ 18.3 million. a. What is the​ firm's current​ ROE? b. If the firm increased its net profit margin to 4.45 %​, what would be its​ ROE? c.​ If, in​ addition, the firm increased its revenues by 22 % ​(maintaining this higher profit margin and without changing its assets...
Consider a retail firm with a net profit margin of 3.35 %​, a total asset turnover...
Consider a retail firm with a net profit margin of 3.35 %​, a total asset turnover of 1.79​, total assets of $ 43.1 ​million, and a book value of equity of $ 17.5 million. a. What is the​ firm's current​ ROE? b. If the firm increased its net profit margin to 4.08 %​, what would be its​ ROE? c.​ If, in​ addition, the firm increased its revenues by 25 % ​(maintaining this higher profit margin and without changing its assets...
Braam Fire Prevention Corp. has a profit margin of 9.70 percent, total asset turnover of 1.41,...
Braam Fire Prevention Corp. has a profit margin of 9.70 percent, total asset turnover of 1.41, and ROE of 18.75 percent. What is its firm's debt-equity ratio?
if we know that a firm has a net profit margin of 4.5%, total asset turnover...
if we know that a firm has a net profit margin of 4.5%, total asset turnover of 0.72, and a financial leverage multiplier of 1.24, what is its ROE? What is the advantage to using the DuPont system to calculate ROE over the direct calculation of earnings available for common stockholders divided by common stock equity?
If we know that a firm has a net profit margin of 4.2%, total asset turnover...
If we know that a firm has a net profit margin of 4.2%, total asset turnover of 0.62, and a financial leverage multiplier of 1.37, what is its ROE? What is the advantage to using the DuPont system to calculate ROE over the direct calculation of earnings available for common stockholders divided by common stock equity?
You’ve collected the following information about Sully, Inc.: Profit margin = 4.43 % Total asset turnover...
You’ve collected the following information about Sully, Inc.: Profit margin = 4.43 % Total asset turnover = 3.40 Total debt ratio = .26 Payout ratio = 28 % What is the sustainable growth rate for the company? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)    Sustainable growth rate              %    What is the ROA? (Do not round intermediate calculations and enter your answer as a percent rounded to...
Assume the following ratios are constant. Total asset turnover = 2.30 Profit margin = 5.8 %...
Assume the following ratios are constant. Total asset turnover = 2.30 Profit margin = 5.8 % Equity multiplier = 1.77 Payout ratio = 35 % What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate
Assume the following ratios are constant. Total asset turnover = 2.23 Profit margin = 5.1 %...
Assume the following ratios are constant. Total asset turnover = 2.23 Profit margin = 5.1 % Equity multiplier = 1.70 Payout ratio = 48 % What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate ________ %
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT