Question

for an all equity firm with a total asset turnover of 1.6, what profit margin would achieve a target ROE of 0.29? Conver the profit margin rate to a percent

Answer #1

Question 1
For an all equity firm with a total asset turnover of 1, what
profit margin would achieve a target ROE of 0.12? Convert the
profit margin rate to a percent and report it to the nearest
hundredth as in xx.xx % but not entering the percent sign. You
would need to calculate the rate to four places before multiplying
by 100 to convert to a percent.
Question 2
A balance sheet shows current assets as $5,850, accrued wages...

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?

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 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...

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 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?

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?

One. The famous Dupont Identity breaks Return on Equity (ROE)
into three components: Profit Margin, Total Asset Turnover, and
Financial Leverage (Assets/Equity).
French Corp. has an Asset/Equity ratio of 1.55. Their current
Total Asset Turnover has recently fallen to 1.20, bringing their
ROE down to 9.1%
a) What is this firm's Profit Margin?
B) If the company were able to improve its Total Asset Turnover
to 1.8, what would be their new ROE?
Two. Sousa, Inc., has Sales of $37.3...

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.

Question: A company has a profit margin of
8.8%, total asset turnover of 3.7, assets of $88, 000 and
liabilities of $25, 000. How would the ROE change if profit margin
increases to 9.5%, sales decrease by 5% and all balance sheet items
stay the same?

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