Williams, Inc. has a debt ratio of 40%, return on assets (ROA) of 20% and a...

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Williams, Inc. has a debt ratio of 40%, return on assets (ROA) of 20% and a net profit margin of 5%. Compute Return on Equity (ROE) for Williams. Also, compute the total asset turnover ratio for Williams. You are given the following information for a certain company: . Return on Equity Return on Assets 50% 30% Net Profit Margin 8% Determine the company's Debt Ratio. If the ABC company has a current ratio of 1.5 times. Its quick ratio is 1. If current assets are $3 million, what is the dollar value of inventory? Grayille Financial Consultants, Inc. is planning to increase the number of days it allows its clients to pay their bills from 30 days to 45 days. Grayille believes that this policy change will have no effect on either sales or costs. Any asset changes resulting from this new policy will be offset by a corresponding and equal change in equity. All else constant, what effect would this new collection policy have on the firm's: a. Return on equity (ROE). b. Quick ratio. c. Return on assets (ROA). d. Debt ratio. (INCREASE, DECREASE, NO EFFECT) (INCREASE, DECREASE, NO EFFECT) (INCREASE, DECREASE, NO EFFECT) (INCREASE, DECREASE, NO EFFECT) Williams, Inc. has a debt ratio of 40%, return on assets (ROA) of 20% and a net profit margin of 5%. Compute Return on Equity (ROE) for Williams. Also, compute the total asset turnover ratio for Williams. You are given the following information for a certain company: . Return on Equity Return on Assets 50% 30% Net Profit Margin 8% Determine the company's Debt Ratio. If the ABC company has a current ratio of 1.5 times. Its quick ratio is 1. If current assets are $3 million, what is the dollar value of inventory? Grayille Financial Consultants, Inc. is planning to increase the number of days it allows its clients to pay their bills from 30 days to 45 days. Grayille believes that this policy change will have no effect on either sales or costs. Any asset changes resulting from this new policy will be offset by a corresponding and equal change in equity. All else constant, what effect would this new collection policy have on the firm's: a. Return on equity (ROE). b. Quick ratio. c. Return on assets (ROA). d. Debt ratio. (INCREASE, DECREASE, NO EFFECT) (INCREASE, DECREASE, NO EFFECT) (INCREASE, DECREASE, NO EFFECT) (INCREASE, DECREASE, NO EFFECT)

Answer rating: 100% (QA)

Answer To compute the Return on Equity ROE for Williams we can use the formula ROE ROA Equity Multiplier Given that the debt ratio is 40 we can calcul... View the full answer