Question: A firm has a return on equity of 15%. The debt-equity ratio is 50%. The total asset turnover is 1.25 and the profit margin is

A firm has a return on equity of 15%. The debt-equity ratio is 50%. The total is 1.25 and the profit margin is 8%. The total equity is $3,200. What is the amount of the net income?
a) $480
b) $500
c) $540
d) $600
e) $620

Step by Step Solution

★★★★★

3.42 Rating (180 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a 480 Debt 050 Equity 0503200 ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1019-B-M-A-P-C(4489).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Now assume that Lube Oil has a return on equity of 5% and a cost of equity of 10%. As a stockholder in Lube Oil, would you want the firm to change its dividend policy? Why or why not?

A firm has a return on assets of 12 percent and a return on equity of 18 percent. What is the debt-to-total assets ratio?

Jacob Cornwall has a business in which hes invested $250,000 of his own money, which is the firms only capital. (There are no other equity investors and no debt.) In a recent year the firm had net...

A firm has a return on equity of 15%. The debt-equity ratio is 50%. The total asset turnover is 1.25 and the profit margin is 8%. The total equity is $3,200. What is the amount of the net income?...

A firm has a return on equity of 15%. The debt-equity ratio is 50%. The total asset turnover is 1.25 and the profit margin is 8%. The total equity is $3,200. What is the amount of the net income?

can i have the explanation pls If a company has an equity return rate of 15%, a debt-to-equity ratio of 50%, and total asset turnover and marginal gross profit margin of 1.25 and 8% respectively,...

Assume that the following ratios are constant. Total asset turnover 1.25 Profit margin 6.3% Equity multiplier 1.9 Payout ratio 63% Required: What is the maximum growth rate for this firm if it keeps...

2. Assess the performance of SCI using the ratios below. Provide a thorough analysis that analyses the results as well as the usefulness of each ratio. In your responses, include any recommendations...

A firm has a debt-equity ratio of 50%. The total asset turnover is 1.31 and the profit margin is 9%. The total equity is $4,000. What is the firms ROE? Express your answer as a percentage to 2...

A firm has a debt-equity ratio of 50%. The total asset turnover is 1.41 and the profit margin is 11%. The total equity is $4,000. What is the firms ROE? Express your answer as a percentage to 2...

How do calculate interest payments on debt? 1 Instructions: Fill out the empty cells in the table. Follow the formulas in row H. 2 3 4 Sales growth 5 Current assets/Sales BASIC TEMPLATE PRO FORMA...

A machine produces metal rods used in an automobile suspension system. A random sample of 15 rods is selected, and the diameter is measured. The resulting data (in millimeters) are as follows: (a)...

Zunilda is 77-year-old individual with an AGI of $25,000 in 2016. She began living in a nursing home in 2016 upon the recommendation of her primary care physician in order to receive medical care for...

1. Many museums offer free admission one day a week, on a weekday. On that day we observe that museumgoers are more likely to be senior citizens than on a typical Saturday. Why? Every summer, New...

The element sodium can emit light at two wavelengths, 1 = 589.10 nm and 2 = 589.59 nm. Light from sodium is being used in a Michelson interferometer (Figure). Through what distance must mirror M2 be...

Ocean waves moving at a speed of 4.0 m/s are approaching a beach at angle ?1 = 30o to the normal, as shown from above in Figure. Suppose the water depth changes abruptly at a certain distance from...

Figure a, shows two light rays that are initially in phase as they travel upward through a block of plastic, with wavelength 400 nm as measured in air. Light ray r1 exits directly into air. However,...

Based on the increasing theft rate in Sunset Harbor, the Harbor is planning to upgrade its security system. It is a 4 year-period project and will significantly increase Sunset Harbors security...

python can add two strings together with ' + ' operator

QUESTION 7 Shares of a closed-end fund are trading at a 6% premium to its $10 net asset value. The current market price of the fund's shares are closest to: a. $9.40. b. $10.06. c. $10.60. d. $16.00....