A firm has sales of $500,000, a debt-to-equity ratio of one, and total assets of $1,000,000....
A firm has sales of $500,000, a debt-to-equity ratio of one, and total assets of $1,000,000. If its profit margin is 5%, what is the firm’s return on equity?
a) 3.3%
b) 6.7 %
c) 5.0 %
d) 2.5 %
e) Further information is needed,
Homework Answers
Profit margin=Net income/Sales
Net income=(500,000*5%)=$25000
debt to Equity ratio=debt/Equity
Hence debt=Equity
Total assets=Total liabilities+Total equity
1,000,000=Equity+Equity
Equity=1,000,000/2=$500,000
ROE=Net income/Equity
=25000/500,000
=5%
Add Answer to:
A firm has sales of $500,000, a debt-to-equity ratio of one, and
total assets of $1,000,000....
A firm has sales of $1,000,000, a net profit margin of 6%, total assets of $1,200,000,...
A firm has sales of $1,000,000, a net profit margin of 6%, total assets of $1,200,000, and a total debt ratio of 50%. It pays no dividends. The return on equity is ------ 4 percent 5 percent 6 percent 10 percent
Smith & Sons has a debt-equity ratio of.55. What is the total debt ratio? Select one:...
Smith & Sons has a debt-equity ratio of.55. What is the total debt ratio? Select one: a. .46 b. .55 c. .51 d. .49 e. .35 Glen Acre Wines has sales of $682,100, total debt of $285,000, total equity of $323,900, and a profit margin of 8 %. What is the return on assets? Select one: a. 9.17 % b. 9.11 % c. 6.28 % d. 9.03 % e. 8.96 %
A firm has a debt-to-equity ratio of 1.4, a profit margin of 15%, $600,000 in debt...
A firm has a debt-to-equity ratio of 1.4, a profit margin of 15%, $600,000 in debt with an interest rate of 10%, EBIT of $220,000, and a tax rate of 30%. a. What is the firm’s total asset turnover? b. What is the firm’s times interest earned? c. What is the firm’s return on equity?
1. ZYX Ltd. has sales of $1,000,000, retention ratio of 65%, equity multiplier of 2.5, dividends...
1. ZYX Ltd. has sales of $1,000,000, retention ratio of 65%, equity multiplier of 2.5, dividends of $30,000, and equity of $312,500. What is the growth rate that the firm can achieve without outside financing? Select one: a. 6.11% b. 6.76% c. 7.13% d. 7.68% e. There is insufficient information given for this calculation. 2. WVU Corporation has a sustainable growth rate of 15%, total assets to sales ratio of 1.5, profit margin of 10%, and dividend payout of 50%....
A firm has total assets of $14 million and a debt/equity ratio of 0.75. Its sales...
A firm has total assets of $14 million and a debt/equity ratio of 0.75. Its sales are $10 million, and it has total fixed costs of $4 million. If the firm's EBIT is $2 million, its tax rate is 45%, and the interest rate on all of its debt is 10%, what is the firm's ROE?
Tube Company has $1,200,000 in assets and $500,000 of debt. It reports net income of $150,000....
Tube Company has $1,200,000 in assets and $500,000 of debt. It reports net income of $150,000. a. What is the return on the assets? b. What is the return on stockholders' equity? c. If the firm has an asset turnover ratio of 3 times, what is the profit margin (return on sales)?
Question 1(10 pts): D SS Stores has total debt of $4,910 and a debt-equity ratio of...
Question 1(10 pts): D SS Stores has total debt of $4,910 and a debt-equity ratio of 0.52. What is the value of the total assets? a. $16,128.05 b. $7,253,40 c. $9,571.95 d. $11,034.00 e. $14,352.31 i. TJ's has annual sales of $813,200, total debt of $171,000, total equity of $396,000, and a profit margin of 5.78 percent. What is the return on assets? a. 8.29 percent b. 6.48 percent c. 9.94 percent d. 7.78 percent e. 8.02 percent ii) Bernice's...
Y3K, Inc., has sales of $4,600, total assets of $3,245, and a debt-equity ratio of 1.60....
Y3K, Inc., has sales of $4,600, total assets of $3,245, and a debt-equity ratio of 1.60. If its return on equity is 14 percent, what its net income? A. $644.00 B. $174.73 C. $123.26 D. $454.30 E. $51.47
Garwryk, Inc., which is financed with debt and equity, presently has a debt ratio of 79...
Garwryk, Inc., which is financed with debt and equity, presently has a debt ratio of 79 percent. What is the firm's equity multiplier? How is the equity multiplier related to the firm's use of debt financing (i.e., if the firm increased its use of debt financing would this increase or decrease its equity multiplier)? Explain. What is the firm's equity multiplier? The equity multiplier is given by: Equity Multiplier equals StartFraction 1 Over 1 minus Debt Ratio EndFraction The equity...
4. A firm has Debt-Equity ratio of 1.2 and Total Assets of $2 million. What must...
4. A firm has Debt-Equity ratio of 1.2 and Total Assets of $2 million. What must be total debt? 5. A firm has sales of $355,000, net income of $28,000, and dividends of $12,500. Total debt is $73,000 and Total equity is $95,000. If the firm grows at the SGR, issues no new equity, and maintains its Debt-Equity ratio, how much must be borrowed?
A firm has sales of $1,000,000, a net profit margin of 6%, total assets of $1,200,000, and a total debt ratio of 50%. It pays no dividends. The return on equity is ------ 4 percent 5 percent 6 percent 10 percent
Tube Company has $1,200,000 in assets and $500,000 of debt. It reports net income of $150,000. a. What is the return on the assets? b. What is the return on stockholders' equity? c. If the firm has an asset turnover ratio of 3 times, what is the profit margin (return on sales)?
Question 1(10 pts): D SS Stores has total debt of $4,910 and a debt-equity ratio of 0.52. What is the value of the total assets? a. $16,128.05 b. $7,253,40 c. $9,571.95 d. $11,034.00 e. $14,352.31 i. TJ's has annual sales of $813,200, total debt of $171,000, total equity of $396,000, and a profit margin of 5.78 percent. What is the return on assets? a. 8.29 percent b. 6.48 percent c. 9.94 percent d. 7.78 percent e. 8.02 percent ii) Bernice's...
4. A firm has Debt-Equity ratio of 1.2 and Total Assets of $2 million. What must be total debt? 5. A firm has sales of $355,000, net income of $28,000, and dividends of $12,500. Total debt is $73,000 and Total equity is $95,000. If the firm grows at the SGR, issues no new equity, and maintains its Debt-Equity ratio, how much must be borrowed?
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago