Selected information is provided for Tiny Bubbles Bath Company: Calculate ROE from 2013 to 2015 and evaluate

Question:

Selected information is provided for Tiny Bubbles Bath Company:

2014 2015 2013 Sales Assets Net income Total equity $2,600,000 $2,000,000 $ 207,000 $ 800,000 $3,000,000 $2,250,000 $ 22

Calculate ROE from 2013 to 2015 and evaluate whether you think this company's ROE growth is sustainable.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Financial Management Theory And Practice

ISBN: 978-0176583057

3rd Canadian Edition

Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason

See More Books

Question Posted: Jun 11, 2019 12:05 PM

See More Questions

In the table that follows, complete the balance sheet and sales information for J. White Industries using the following financial data: Quick ratio: 0.80X Total assets turnover: 1.5X Days sales...
a. Find the present values of the following cash flow streams. The appropriate interest rate is 14%. b. What is the value of each cash flow stream at a 0% interest rate? Year Cash Stream A Cash...
a. It is now January 1. You plan to make five deposits of $100 each, one every 6 months, with the first payment being made today. If the bank pays a nominal interest rate of 8% but uses semiannual...
The condensed balance sheet and income statement data for Cardinal Corporation are presented below. Additional information: 1. The market price of Cardinal common stock was $5.00, $3.50, and $2.30...
If A is an n n positive definite matrix and U is an n m matrix of rank m, show that UTAU is positive definite.
Lets take a look at one aspect of the U.S. tax system over the past 100 years. Using the FRED economic database ( https://fred.stlouisfed.org/ ), look for U.S Individual Income Tax: Tax Rates for...
True or False: If $E R R>M A R R$, then MIRR $>$ MARR.
Messner Co. reported $145,000 of net income for 2010. The accountant, in preparing the statement of cash flows, noted several items occurring during 2010 that might affect cash flows from operating...
Q3. If W and W are two independent Brownian motions and p is a constant between -1 and 1, then the process Xt = pWt + 1 pWt is continuous and has - marginal distributions N(0, t). Is this X a...
Ashley attended an in-service education program about the outpatient prospective payment system (OPPS) where she learned that certain Medicare Part B services are paid according to ambulatory payment...
Cayman Auto has $600,000 of debt outstanding, and it pays an interest rate of 8% annually: Cayman Auto's annual sales are $3 million, its average tax rate is 25%, and its net profit margin is 3%. If...
Joshua & White (J&W) Technologies's financial statements are also shown below. Answer the following questions. (Note: Industry average ratios are provided in Ch03 Build a Model.xlsx.) a. Has J&Ws...
Calculate a. The zero point energy of a He atom in a one-dimensional box of length 1.00 cm b. The ratio of the zero point energy to k B T at 300.K.
for this case study carefully read the article titled "The Case for Reparations" The Atlantic Introduction Provide an overview of the situation Identify critical issues underlying the problems...
What types of groups/teams are used at Amazon? How are roles defined in order to support teamwork at Amazon? Evaluate the performance of teams at Amazon in terms of the six dimensions of a team...
Topic: Social Engineering Description: Answer each question below with a few sentences 1. What is Phishing? What are some of the main types of phishing? 2. How can you identify Phishing? Why is...
Vincent is an Investment Advisor at a bank who has taken some time off work during the Christmas period. Vincent has recently taken an interest in landscape gardening and to this end, has decided to...
Section One: Quotations . Instructions: In a word document. For FOUR of the quotations below, you are to 1) indicate which number quotation you are discussing, 2) name the philosophy/philosopher from...
Deacon Company is a merchandising company that is preparing a budget for the three-month period ended June 30. The following information is available: Deacon Company Balance Sheet March 31 Assets...
The Higher the time period of the financial security the higher the. ............... risk. O a. Maturity O b. Default and Maturity Oc. Default O d. Liquidity
Data Services Corp. just paid a dividend of $2.25 a share (i.e., D0 = $2.25). The dividend is expected to grow 8% a year for the next 3 years, and then 10% a year thereafter. What is the expected...
Greenfield Environmental is expanding rapidly, and it currently needs to retain all of its earnings; hence it does not pay any dividends. However, investors expect Greenfield to begin paying...
Rolen Riders issued preferred stock with a stated dividend of 6% of par. Preferred stock of this type currently yields 7%, and the par value is $25. Assume dividends are paid annually. a. What is the...
A corporation reported cash or 1 5 , 3 0 0 and total assets of 1 8 0 , 0 0 0 on its balance sheet it's common size present for cash will be?
Morty Industries, which uses a process - costing system, adds material at the beginning of production and incurs conversion cost evenly throughout manufacturing. The following information was taken...
The following information has been extracted from the financial statements of a company. Net income in 2 0 1 6 = $ 3 , 0 0 0 Annual depreciation in 2 0 1 6 = $ 1 , 0 0 0 Net operating working...

Selected information is provided for Tiny Bubbles Bath Company: Calculate ROE from 2013 to 2015 and evaluate

Question:

2014 2015 2013 Sales Assets Net income Total equity $2,600,000 $2,000,000 $ 207,000 $ 800,000 $3,000,000 $2,250,000 $ 222,000 $ 800,000 $4,000,000 $3,000,000 $ 245,000 $ 860,000

Step by Step Answer:

ROE 13 2070002600000 796 2587 26000002000000 130 200...View the full answer

Financial Management Theory And Practice

Related Video

Students also viewed these Business questions