Jack Corp. has a profit margin of 9.70 percent, total asset turnover of 1.37, and ROE...

Question

Question

Jack Corp. has a profit margin of 9.70 percent, total asset turnover of 1.37, and ROE of 18.62 percent. What is the firm's debt-equity ratio?

business finance

Answer 1

✔ Recommended Answer

Answer #1

ROE=profit margin*Total asset turnover*equity multiplier

18.62=(9.7*1.37*equity multiplier)

equity multiplier=18.62/(9.7*1.37)

=1.40115885

equity multiplier=Total assets/equity

Total assets=1.40115885 equity

Total assets=debt+equity

debt=1.40115885 equity-equity

=0.40115885 equity

Hence debt-equity ratio=debt/equity

=0.4012(Approx).

Add a comment

Answer 2

Similar Homework Help Questions

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.)
Question 14 10 points Save Anne New Town Insurance Corp. has a profit margin of 9.70...

Question 14 10 points Save Anne New Town Insurance Corp. has a profit margin of 9.70 percent, total asset turnover of 1.41, and ROE of 18.76 percent. What is its firm's debt-equity ratio? A 0.37 8 0.03 oc0.73 0.0.33 Question 14 of 20 A Moving to another question wul Save this response

Total Greens, Inc. has a profit margin of 8.0 percent, total asset turnover of 1.3, and...

Total Greens, Inc. has a profit margin of 8.0 percent, total asset turnover of 1.3, and ROE of 24.3 percent. The firm's debt−equity ratio is ______ times. (Round your answer to 2 decimal places. (e.g., 32.16)) Your Answer:
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...
2.5 Stephanie, Inc. has a profit margin of 9 percent, total asset turnover of 1.5, and...

2.5 Stephanie, Inc. has a profit margin of 9 percent, total asset turnover of 1.5, and ROE of 17.20 percent. What is this firm's debt-equity ratio? 2.6 For the past year, David, Inc. had a cost of goods sold of $18,364. At the end of the year, the accounts payable balance was $4,205. a. (6 points) How long on average did it take the company to payoff its suppliers during the year? b. (4 points) What might a large value...

A firm’s ROE is 21%, and its profit margin is 3.2%. If the total asset turnover...

A firm’s ROE is 21%, and its profit margin is 3.2%. If the total asset turnover is 3.5, what is the firm’s debt ratio?
French corp has an asset/equity ratio of 1.55. their current total asset turnover has recently fallen...

French corp has an asset/equity ratio of 1.55. their current total asset turnover has recently fallen to 1.20, bringing their roe to 9.1% a. what is this firms profit margin? b. if the company were able to improve its total asset turnover to 1.8, what would be their new roe? A- Cells Assignment 3-4 Worksheet - Excel Home Insert Page Layout Formulas Data Review View Developer Tell me what you want to do... & Cut Arial - 12 A A...
Rippard's has a debt ratio of 27 percent, a total asset turnover ratio of 1.3 and...

Rippard's has a debt ratio of 27 percent, a total asset turnover ratio of 1.3 and a return on equity (ROE) of 63 percent. Compute Rippard's net profit margin. (Record your answer as a percent rounded to one decimal place but do not include the percent sign in your answer. Thus, record.32184 = 32.1% as 32.1). Your Answer: A firm has net income of $300,000 and sales of $10,000,000. Its interest expense is $200,000 and the firm's tax rate is...

Manufacturer A has a profit margin of 2%, a total asset turnover of 1.8 and an...

Manufacturer A has a profit margin of 2%, a total asset turnover of 1.8 and an equity multiplier of 5.1. Manufacturer B has a profit margin of 2.5%, a total asset turnover of 1.3 and an equity multiplier of 4.6. How much total asset turnover should Manufacturer B have to match Manufacturer' A's ROE ion ○ 2.20 O 1.28 O 3.19 1.6