Assume you are given the following ratios: Assets turn over = 1.5x Return on assets = 3%
Question:
Assume you are given the following ratios:
Assets turn over = 1.5x
Return on assets = 3%
Return on equity = 5%
1. How much is the Profit Margin?
2. How much is the Debt Ratio?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 61% (13 reviews)
1 Computation of the Profit Margin using dupoint model Given information Assets turn over ...View the full answer
Answered By
Divya Munir
I hold M.Sc and M.Phil degrees in mathematics from CCS University, India and also have a MS degree in information management from Asian institute of technology, Bangkok, Thailand. I have worked at a international school in Bangkok as a IT teacher. Presently, I am working from home as a online Math/Statistics tutor. I have more than 10 years of online tutoring experience. My students have always excelled in their studies.
4.90+
0 Reviews
10+ Question Solved
Related Book For
Financial Management Theory and Practice
ISBN: 978-0176517304
2nd Canadian edition
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
Question Posted:
Students also viewed these Finance questions
-
Assume you are given the following abbreviated financial statement. ($ in millions) $150.0 Fixed and other assets .............. 200.0 Total assets ................... $350.0 Current liabilities...
-
You are given the following payoff table (in units of thousands of dollars) for a decision analysis problem: (a) According to Bayes decision rule, which alternative should be chosen? (b) Find EVPI....
-
What is the result of the following? A. [Natural History, Science] B. [Natural History, Science, Art] C. The code does not compile. D. The code compiles but throws an exception at runtime. } import...
-
The unit cell for MgFe2O4 (MgO-Fe2O3) has cubic symmetry with a unit cell edge length of 0.836 nm. If the density of this material is 4.52 g/cm3, compute its atomic packing factor. For this...
-
a. Under the pecking-order theory, what is the order in which firms will obtain financing? b. Why might firms prefer not to issue new equity? c. What are some differences in implications of the...
-
How is the California court system structured?
-
Green Landscaping Inc. is preparing its budget for the first quarter of 2012. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end...
-
Ricardo (just celebrated his 30th birthday), wants to accumulate $1 million by the time he turns 65 years of age. If he could obtain an interest rate of 7% (annual compounded monthly) and assuming he...
-
Madison Manufacturing is considering a new machine that costs $250,000 and would reduce pre-tax manufacturing costs by $90,000 annually. Madison would use the 3-year MACRS method to depreciate the...
-
Felton Farm Supplies, Inc., has an 8 percent return on total assets of $300,000 and a net profit margin of 5 percent. What are its sales?
-
What are the ratios under the category Liquidity Ratios?
-
Is the overall or equivalent resistance for a set of resistances in parallel always less than the smallest resistance in the set? Why?
-
How would you analogize and distinguish these two cases for a clerk documenT 1) In S.J. v. Athens Independent School District , a 17-year-old female student, Sarah, from a Southern city, is suing her...
-
Management of Mittel Rhein AG of Kln, Germany, would like to reduce the amount of time between when a customer places an order and when the order is shipped. For the first quarter of operations...
-
Joel, a native of Cambodia, is married to Danielle who is a U.S. citizen. While reviewing Joel and Danielle's paperwork, the immigration officer informs them that their combined gross income is...
-
Sally Citizen is excited to accept a job offer from Atwill Incorporated. She has spoken to her new manager and is told she will receive stock options in 2 years and an annual salary of $100k. She...
-
Your client's knowledge of financial theory and financial mathematics is now better than what it was because of your previous report. Similar to the prior report, your client has completed some...
-
What products are likely to be more standardized across countries? Why? What products are least likely?
-
Graph the following conic sections, labeling vertices, foci, directrices, and asymptotes (if they exist). Give the eccentricity of the curve. Use a graphing utility to check your work. 10 5 + 2 cos 0
-
Rescission is the unmaking of a contract so as to return the parties to the positions they occupied before the contract was made. (True/False)
-
What is the key difference between a static budget and a flexible budget?
-
Why might managers find a flexible-budget analysis more information than a static-budget analysis?
-
Describe the steps in developing a flexible budget.
-
How would each leadership style ( transactional leadership and transformational leadership) approach communication with various stakeholders?
-
Explained the different type of leader -Great man -trait theory -skill theory -behavior theory -Contingency theory (situational) -Transformation transactional leadership -transactional leadership...
-
What effect will a corporation's emphasis on environmental responsibility have on its financial performance in both the short term and long term? Does this contradict the notation of maximizing the...
Study smarter with the SolutionInn App