A firm has sales of $500,000, a debt-to-equity ratio of one, and total assets of $1,000,000. If

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

Question:

A firm has sales of $500,000, a debt-to-equity ratio of one, and total assets of $1,000,000. If its profit margin is 5%, what is the firm’s return on equity?

Related Book For answer-question

Foundations of Financial Management

ISBN: 978-1259194078

15th edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

See More Books

Posted Date: Feb 25, 2024 04:11 AM

See More Questions

1.A firm has net working capital of $1,100 and current liabilities of $2,800. What is the current ratio? .98 2.56 .39 .72 1.39 Question 2 1.Top Sound, Inc., has total assets of $212,000, a...
1. Based on the information provided in the case below, what is the key strategic goal for Tim Hortons as of August 2014? It would be a year of dramatic change for Tim Hortons Inc. On August 26,...
The bonds issued by Stainless Tubs bear a 6 percent coupon, payable semiannually. The bonds mature in 11 years and have a $1,000 face value. Currently, the bonds sell for $989. What is the yield to...
R and Q form equal partnership RQ on February 15. Partner R has a tax year ending on July 31, whereas partner Qs tax year ends on October 31. What taxable year must the partnership use? a. February...
A cyclist accelerates from rest at a rate of 1.00 m/s2. How fast will a point at the top of the rim of the tire (diameter = 68.0 cm) be moving after 2.25 s? v =? -a = 1.00 m/s? This point on tire at...
Create a 4 4 matrix A having random integer values between 1 and 10. Call the matrix A and, using MATLAB, perform the following operations. For each part explain the operation. (a) A* A (b) A.*A (c)...
What is the significance of a statechart diagram?
Chris Rock has prepared the following list of statements about depreciation. 1. Depreciation is a process of asset valuation, not cost allocation. 2. Depreciation provides for the proper matching of...
RFL versus Boxhouse - Seller's Information James Murphy, Sales Manager and Scott Campbell, Sales Representative for Boxhouse Ltd were developing a strategy for a negotiation session to be held with...
1. A saturated sample of soil weighed 138.89g before drying and 112.89 after drying.If the dimensions of the sample were 35mm diameter and 70mm long, calculate: 2. The voids ratio to 3 decimal...
Norah Baines is one of the most devoted teachers at Oakwood Academy. She has been working with the institution for seven years and is expecting a promotion soon. However, Norah's candidacy for this...
State whether each of the following events will result in a movement along General Motors (GMs) demand curve for labor in their U.S. automobile factories or whether it will cause its demand curve for...
The accounting records of Shinault Inc. show the following data for 2015. 1. Equipment was acquired in early January for $300,000. Straight-line depreciation over a 5-year life is used, with no...
Calculate the amount of coal required to produce the same energy as that $1 \mathrm{~kg}$ of U-235. (Assume coal contains 100\% carbon and that combustion of 1 atom of carbon gives \(4...
The following information has been obtained for the Gocker Corporation. 1. Prior to 2014, taxable income and pretax financial income were identical. 2. Pretax financial income is 1,700,000 in 2014...
A $5 \mathrm{~cm}$ thick layer of pure absorbing material with atom density of $4.0 \times 10^{22}$ nuclei $/ \mathrm{cm}^{3}$ absorbs $99.9 \%$ of the incident beam of neutrons. What is the...
Internal environment of a business includes: (i) Business ethics and moral standards (ii) Business and managerial policies (iii) Prospects of business development (iv) Government rules and...
Baxter, Inc., owns 90 percent of Wisconsin, Inc., and 20 percent of Cleveland Company. Wisconsin, in turn, holds 60 percent of Clevelands outstanding stock. No excess amortization resulted from these...
How does the interest rate on new debt influence the use of financial leverage?
What role does depreciation play in break-even analysis based on accounting flows? Based on cash flows? Which perspective is longer term in nature?
Al Bundy is evaluating a new advertising program that could increase shoe sales. Possible outcomes and probabilities of the outcomes are shown next. Compute the coefficient ofvariation. Possible...
If, during a stride, the stretch causes her center of mass to lower by $10 \mathrm{~mm}$, what is the stored energy? A. $3.0 \mathrm{~J}$ B. $6.0 \mathrm{~J}$ C. $9.0 \mathrm{~J}$ D. \(12...
A $1.00 \mathrm{~kg}$ block is attached to a horizontal spring with spring INT constant $2500 \mathrm{~N} / \mathrm{m}$. The block is at rest on a frictionless surface. A $10.0 \mathrm{~g}$...
We can make a static measurement to deduce the spring constant to use in the model. If a $61 \mathrm{~kg}$ woman stands on a low wall with her full weight on the ball of one foot and the heel free...

A firm has sales of $500,000, a debt-to-equity ratio of one, and total assets of $1,000,000. If

Question:

Expert Answer:

Heres how to calculate the firms return on equity ROE Step 1 Calculate total liabilities Si... View the full answer

Foundations of Financial Management

Students also viewed these finance questions