Computer Geeks has sales of $566980, a profit margin of 0.53, a total asset turnover rate...

Question

Question

Computer Geeks has sales of $566980, a profit margin of 0.53, a total asset turnover rate...

Computer Geeks has sales of $566980, a profit margin of 0.53, a total asset turnover rate of 1.13, and an equity multiplier of 1.39. What is the return on equity?

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Net Income = Sales * Profit margin

= 566980*0.53

= 300499.40

Total assets = Sales/TAT = 566980/1.13 = 501752.2

Hence

Equity Multiplier = Total assets/ Equity

Equity = 501752.2/1.39 = 360972.8

ROE = Net Income/ Equity

= 300499.4/ 360972.8

=83.25%

Add a comment

Answer 2

Similar Homework Help Questions

Computer Geeks has sales of $521,000, a profit margin of 14.8 percent, a total asset turnover...

Computer Geeks has sales of $521,000, a profit margin of 14.8 percent, a total asset turnover rate of 2.16, and an equity multiplier of 1.30. What is the return onequity?
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
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 1.28 O3.19 O 2.20 O 1.6

If Roten Rooters, Inc., has an equity multiplier of 1.42, total asset turnover of 1.39, and...

If Roten Rooters, Inc., has an equity multiplier of 1.42, total asset turnover of 1.39, and a profit margin of 6.50 percent. What is its ROE? rev: 09_17_2012 11.55% -3.79% 14.11% 12.32% 12.83%
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...
. Drazi, Inc.’s profit margin is 15%, total asset turnover is 0.8, equity multiplier is 1.25,...

. Drazi, Inc.’s profit margin is 15%, total asset turnover is 0.8, equity multiplier is 1.25, and dividend payout ratio is 45%. The firm has no plan to raise funds externally, only counting on its own internal funding (i.e., retained earnings) to support growth. What maximum growth rate can Drazi achieve? Hint: According to the “Key Equations” on your textbook Appendix, ROA = Profit Margin x Total Asset Turnover.

Assume the following ratios are constant: Total asset turnover 2.70 Profit margin 6.7 % Equity multiplier...

Assume the following ratios are constant: Total asset turnover 2.70 Profit margin 6.7 % Equity multiplier 2.00 Payout ratio 22 % What is the sustainable growth rate?
The answer is not 18.12 Assume the following ratios are constant. Total asset turnover Profit margin...

The answer is not 18.12 Assume the following ratios are constant. Total asset turnover Profit margin Equity multiplier Payout ratio 2.34 6.2% 1.81 31% What is the sustainable growth rate? (Do not round intermediate calculatic Sustainable growth rate 18.12%
Assume the following ratios are constant: Total asset turnover 2.5 Profit margin 6.5% Equity multiplier 1.60...

Assume the following ratios are constant: Total asset turnover 2.5 Profit margin 6.5% Equity multiplier 1.60 Payout ratio 20% What is the sustainable growth rate?

Assume the following ratios are constant. Total asset turnover = 2.24 Profit margin = 5.2 %...

Assume the following ratios are constant. Total asset turnover = 2.24 Profit margin = 5.2 % Equity multiplier = 1.71 Payout ratio = 49 % 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 %

Computer Geeks has sales of $566980, a profit margin of 0.53, a total asset turnover rate...

Homework Answers

Add Answer to:
Computer Geeks has sales of $566980, a profit margin of 0.53, a total asset turnover rate...

Post as a guest

Earn Coins

Computer Geeks has sales of $521,000, a profit margin of 14.8 percent, a total asset turnover...

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...

If Roten Rooters, Inc., has an equity multiplier of 1.42, total asset turnover of 1.39, and...

2.5 Stephanie, Inc. has a profit margin of 9 percent, total asset turnover of 1.5, and...

. Drazi, Inc.’s profit margin is 15%, total asset turnover is 0.8, equity multiplier is 1.25,...

Assume the following ratios are constant: Total asset turnover 2.70 Profit margin 6.7 % Equity multiplier...

The answer is not 18.12 Assume the following ratios are constant. Total asset turnover Profit margin...

Assume the following ratios are constant: Total asset turnover 2.5 Profit margin 6.5% Equity multiplier 1.60...

Assume the following ratios are constant. Total asset turnover = 2.24 Profit margin = 5.2 %...

Computer Geeks has sales of $566980, a profit margin of 0.53, a total asset turnover rate...

Homework Answers

Add Answer to: Computer Geeks has sales of $566980, a profit margin of 0.53, a total asset turnover rate...

Post as a guest

Earn Coins

Add Answer to:
Computer Geeks has sales of $566980, a profit margin of 0.53, a total asset turnover rate...