Question: A firm has a ROA of 20% and a debt ratio of 60%. The firm has sales of $150,000 and net income of $40,000.

A firm has a ROA of 20% and a debt ratio of

A firm has a ROA of 20% and a debt ratio of 60%. The firm has sales of $150,000 and net income of $40,000. How much equity does the firm have?

Step by Step Solution

★★★★★

3.34 Rating (151 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To find the equity of the firm you can use the formula Equity Total Assets T... View full answer

blur-text-image
Question Has Been Solved by an Expert!

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

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

1. What is the selection bias in the regressions? When will the bias occur? 2. Please explain why the random assignment could be used to address. the selection bias problem.

Q:

A company has current liabilities of $500 Million, and its current ratio is 2.0. 1. What is the total of its current assets? 2. If the firms quick ratio is 1.6, how much inventory does it have? A...

Q:

List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...

Q:

A firm has a ROA of 10% and a debt ratio of 60%. The firm has sales of $150,000 and net income of $10,000. How much equity does the firm have? A Which of the following will result in a increase in...

Q:

A firm has a ROA of 1 0 % and a debt ratio of 6 0 % . The firm has sales of $ 1 5 0 , 0 0 0 and net income of $ 1 0 , 0 0 0 . How much equity does the firm have?

Q:

tip will be included**** please look at the attached word document file. Thank you in advance. 1. Carroll, Inc., has a total debt ratio of .53, total debt of $326,000, and net income of $41,000. What...

Q:

check answers please Saved Question 9 (1 point) A firm has a ROA of 3% and a debt ratio of 45%. The firm has sales of $50,000 and net income of $20,000. How much equity does the firm have? 366666^2/3...

Q:

I need some help on 22,24,30.38 and 40 please im stuck, please show work! a A Income $18,368 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 40...

Q:

Q11 Financial risk refers to the extra risk stockholders bear as a result of the use of debt as compared with the risk they would bear if no debt were used. True False Q12 A firm's capital structure...

Q:

A consultant working for Evermore Publishing Pty Ltd collates the following financial information about the firm: Total assets: $3,000 million Tax rate: 36.6% Op. income (EBIT): $800 million Debt...

Q:

An animated short film shows an equilateral triangle whose dimensions vary with time. Assume the triangle's sides have an instantaneous rate of growth of 4 2 cm/s at the moment the triangle's area is...

Q:

Given the following information, write the equation of an ellipse. 11. Vertices: (0, 4) and (0, -4); Foci: (0, 23) and (0, -23) 12. Vertices: (0, 5) and (0, -5); Co-vertices: (1, 0) and (-1, 0) 13....

Q:

Imagine you are running an online retail business. How would you protect your customer's privacy? Why is it important? Now, think about how you can protect your business and customers from cyber...

Q:

According to Wikipedia (Right-to-work Law): A "right-to-work" law is a statute in the United States that prohibits union security agreements, or agreements between labor unions and employers, that...

Q:

7. IP A solenoid with 385 turns per meter and a diameter of 17.0 cm has a magnetic flux through its core of magnitude . (a) Find the current in this solenoid. (b) How would your answer to part (a)...

Q:

Peruse the website for companies in manufacturing that you feel would use process costing. Go to the company's website and review their annul report. Required: You are to assume the role of a Manager...

Q:

a The space station has a device which records temperature readings every hour. However, the astronaut reading from it is floating upside down, and so reads the values backwards. As a solution an...

Q:

The Ferris wheel in the figure has a radius of 68 feet. The clearance between the wheel and the ground is 14 feet. The rectangular coordinate system shown has its origin on the ground directly below...

Q:

What is the Small Business Administration (SBA), when was it organized, and what was its purpose?

Q:

Describe three financial performance measures that D.lights venture investors might use to examine whether D.light is measuring up financially as it achieves its lives touched goals.

Q:

A venture investor wants to estimate the value of a venture. The venture is not expected to produce any free cash flows until the end of Year 6, when the cash flow is estimated at $2,000,000, and is...

Q:

A citrus farmer has observed the following distribution for the number of oranges per tree. How many oranges does he expect on average?

Q:

On the Titanic, the probability of survival was 0.323. Among first class passengers, it was 0.625. Were survival and ticket class independent? Explain.

Q:

A nervous kicker usually makes 70% of his first field goal attempts. If he makes his first attempt, his success rate rises to 90%. What is the probability that he makes his first two kicks?