Bello Company has a debt-equity ratio of .90. Return on assets is 7.7 percent, and total equity
Question:
Bello Company has a debt-equity ratio of .90. Return on assets is 7.7 percent, and total equity is $880,000. What is the equity multiplier? Return on equity? Net income?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 70% (10 reviews)
The equity multiplier is EM 1 DE EM 1 90 EM 190 ...View the full answer
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
3.50+
2+ Reviews
10+ Question Solved
Related Book For
Corporate Finance Core Principles And Applications
ISBN: 9781260571127
6th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
Question Posted:
Related Video
The Dupont analysis is an expanded return on equity formula, calculated by multiplying the net profit margin by the asset turnover by the equity multiplier. The DuPont analysis is also known as the DuPont identity or DuPont model.This Video will guide on how to calculate return on Equity and estimate profitability of shareholders using DuPont Analysis.
Students also viewed these Business questions
-
Isolation Company has a debt equity ratio of .80. Return on assets is 7.9 percent, and total equity is $480,000. What is the equity multiplier? Return on equity? Net income? Just Dew It Corporation...
-
Nuber Company has a debt equity ratio of .80. Return on assets is 9.7 percent, and total equity is $ 735,000. What is the equity multiplier? Return on equity? Net income?
-
Equity Multiplier and Return on Equity Bettles Fried Chicken Company has a debt-equity ratio of 0.80. Return on assets is 9.2 percent, and total equity is $520,000. What is the equity multiplier?...
-
Yang Company purchased 2,000 widgets and has 400 widgets in its ending inventory at a cost of $90 each and a current replacement cost of $80 each. The net realizable value of each unit in the ending...
-
Consider the following probability distribution: a. Find µ and Ï2. b. Find the sampling distribution of the sample mean for a random sample of n = 2 measurements from this distribution. c....
-
Following is a statement of cash flows (indirect method) for Hartford Inc. for the year ended December 31, 2020. Also shown is a partially completed comparative balance sheet as of December 31, 2020...
-
Thirty-five consecutive samples of 100 bearings each, taken from a factory, had, respectively, 1, 2, 5, 3, 4, 2, 6, 8, 1, 2, 3, 9, 8, 0, 12, 10, 5, 4, 1, 8, 6, 7, 9, 4, 8, 1, 2, 6, 7, 5, 8, 1, 3, 4...
-
Is one equivalent unit computation sufficient for all cost components? Explain your answer.
-
The total sales of S (in thousands of DVD's) of a certain movie are given by the following formula where t is the number of months since the release of the DVD. Use the formula to answer the...
-
Us Republic Corporation Balance Sheet, December 31, 20x3 Us Republic Corporation Statement Of Income And Retained Earnings, Year Ended December 31, 20x3 a. Fill in the 20X3 column in the table that...
-
1. East Coast Yachts uses a small percentage of preferred stock as a source of financing. In calculating the ratios for the company, should preferred stock be included as part of the companys total...
-
Y3K, Inc., has sales of $5,930, total assets of $3,020, and a debt-equity ratio of .55. If its return on equity is 14 percent, what is its net income?
-
What is the probability that an IRS auditor will catch only 2 income tax returns with illegitimate deductions if she randomly selects 5 returns from among 15 returns, of which 9 contain illegitimate...
-
In your opinion, what was the most important development in the history of medicine? Be prepared to defend your position.
-
On 1 January 2006, an entity issued 1 million 8 per cent EUR 100 nominal ten-year term bonds with interest payable each 30 June and 31 December. The bonds, which are traded in the market, were issued...
-
What is the principle of vicarious liability (respondeat superior)?
-
What are the four sources of law in the United States?
-
Computer chips often contain surface imperfections. For a certain type of computer chip, the probability mass function of the number of defects \(X\) is presented in the following table. a. Find...
-
Is it true that all the DNA contained in an eukaryotic cell is in the nucleus? If not, why not? How doesthis support the argument that there were once prokaryotes living inside eukaryotes?
-
How do network effects help Facebook fend off smaller social-networking rivals? Could an online retailer doing half as much business compete on an equal footing with Amazon in terms of costs? Explain.
-
Payback Period and Net Present Value If a project with conventional cash flows has a payback period less than the projects life, can you definitively state the algebraic sign of the NPV? Why or why...
-
Net Present Value Suppose a project has conventional cash flows and a positive we NPV. What do you know about its payback, its discounted payback, its profitability index, its IRR? Explain.
-
Net Present Value Suppose a project has conventional cash flows and a positive we NPV. What do you know about its payback, its discounted payback, its profitability index, its IRR? Explain.
-
Should an MNC purchase Nestl stock yes or no? Recommendations should include the company's sustainability plans, the image of the company, Gordon Growth result, and financial performance. Any...
-
Can the sponsor, or general partner, continue to achieve such high returns? Framed another way, can the general partner earn a 25+% return on the $6,305,000 received at the end of the 10th year? If...
-
Select a hospital that publicly displays their financial performance on their website. Describe the Profit Loss Statement: Review top revenue items Review cost comparison compared to previous year...
Study smarter with the SolutionInn App