If Alexander, Inc., has an equity multiplier of 2.50, total asset turnover of 1.15, and a profit margin of 6.4 percent, what is its ROE?
Answer to relevant QuestionsThe Optical Scam Company has forecast an 18 percent sales growth rate for next year. The current financial statements are shown below. Current assets, fixed assets, and short-term debt are proportional to sales. a. Using the ...Pumpkin Mfg., Inc., is currently operating at only 92 percent of fixed asset capacity. Current sales are $725,000. How fast can sales grow before any new fixed assets are needed? Redo Problem 23 using sales growth rates of 30 and 35 percent in addition to 20 percent. Illustrate graphically the relationship between EFN and the growth rate, and use this graph to determine the relationship between them. Assuming the following ratios are constant, what is the sustainable growth rate? Total asset turnover = 2.50 Profit margin = 6.5% Equity multiplier = 1.10 Payout ratio = 60% What is the future value in three years of $1,800 invested in an account with a stated annual interest rate of 10 percent, a. Compounded annually? b. Compounded semiannually? c. Compounded monthly? d. Compounded ...
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