Answered: DuPONT ANALYSIS Henderson’s Hardware…

DuPONT ANALYSIS Henderson’s Hardware has an ROA of 11%, a 6% profit margin, and anROE of 23%. What is its total assets turnover? What is its equity multiplier?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 6P

See similar textbooks

Related questions

Q: (DuPont analysis) Triangular Chemicals has total assets of $90 million, a return on equity of 37…

A: ROE = Profit margin * Equity multiplier * Total asset turnover 0.37 = 0.046 * 2.97 * Total asset…

Q: McCormack co. Wishes to maintain a growth rate of 6 percent a year, a debt equity ratio of 0.49, and…

A: Calculation of profit margin: Answer: Profit margin is 12.76%

Q: Jiminy Cricket Removal has a profit margin of 8 percent, total asset turnover of 1.0, and ROE of…

A: We know that the return on equity (ROE) is determined by multiplying the profit margin, total asset…

Q: Doublewide Dealers has a ROA of 12%, a 3% profit margin, and an ROE of 15.5%. What is its total…

A: Given ROA = 12% Profit margin = 3% Return on equity = 15.50% Return on Assets (ROA) = Profit Margin…

Q: ham Pharmaceuticals has a profit margin of 5.5% and an equity multiplier of 2.3. Its sales are $100…

A: Return on Equity(ROE): ROE measures the profitability of a business in relation to equity. It is a…

Q: Based on this, calculate the MV/BV ratio.

A: To find MV/BV ration, following steps are followed Calculation of total net sales from total asset…

Q: Henderson's Hardware has an ROA of 11%, a 7% profit margin, and an ROE of 18%. A). What is its…

A: Total assets turnover Return on assets = Net profit / Assets turnover So, Assets turnover = Return…

Q: Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 1.7. Its sales are $90…

A: Return on equity is one of the ratios that tell about the financial position of the company. It can…

Q: he most recent financial statements for Bello Co. are shown here: Income Statement Balance…

A: Given: Dividend payout ratio is 28%. The table is: Income statement Balance Sheet Sales…

Q: A firm has a profit margin of 5.5% and an equity multiplier of 3.0. Its sales are $140 million, and…

A: Profit margin = 5.5%Equity multiplier = 3.0Sales = $140 millionTotal assets = $84 million

Q: If Apex, Inc. has an ROE = 10 percent, equity multiplier = 3, and profit margin of 5 percent, what…

A: Formulas: ROE = Net Profit Margin * Assets turnover * Equity Multiplier(Or leverage ratio)

Q: Precision Aviation had a profit margin of 5.25%, a total assets turnover of 1.5, and an equity…

A: The ROE can be calculated as per Du Pont Equation.

Q: Cisco Systems has total assets of $35.594 billion, total debt of $9.678 billion, and net sales of…

A: Answer - Given, Total Assets = $35.594 B Total Debt = $9.678 B Net Sales = $22.045 B Net Profit…

Q: Income Statement Balance Sheet Current Sales $19,400 $ 11,800 Debt $16,000 assets Costs 13,200 Fixed…

A: In order to compute the internal growth rate, we first required to compute the ROA, which is:

Q: Face Mask Company has a Total Sales of P100,000,000. Its total assets is 50,000,000 and a profit…

A: The mathematical equation:

Q: The most recent financial statements for Bello Co. are shown here: Income Statement Balance…

A: Sustainable growth rate is the growth rate which shows the maximum growth of the company without…

Q: The most recent financial statements for Mandy Company are shown here: Income Statement Balance…

A: Solution:- Internal growth rate means the rate at which the entity will grow in future without…

Q: Ramble On Co. wishes to maintain a growth rate of 10.4 percent per year, a debt-equity ratio of 1.0,…

A: Computation:

Q: Barak Enterprise has an equity multiplier of 2.6 times, total assets of $2,312,000, ROE of 14,8%,…

A: Solution 1-Asset turnover ratio= Net assets/average asset or Total assets 40%…

Q: XTY Company has total assets turnover ratio of 1.90 and a return on total assets of 7.20%. What is…

A: Asset turnover ratio = 1.90 Return on assets = 7.20%

Q: A company has a Return on Equity of 0.23, a Profit Margin of 0.1 and Total Asset Turnover of 0.4.…

A: As per Dupont Analysis, Return on equity = Net Profit Margin * Asset Turnover ratio * Equity…

Q: The Ashwood Company has a long-term debt ratio of .45 and a current ratio of 1.25. Current…

A: Long term debt ratio = long term debt/(long term debt+equity) = 0.45 Current ratio = current…

Q: Gardial & Son has an ROA of 12%, a 5% profit margin, and a return onequity equal to 20%. What is…

A: Given information: Company’s ROA is 12%, Profit margin is 5%, Return on equity (ROE) is 20%, Number…

Q: DuPont analysis) Dearborn Supplies has total sales of $199 million, assets of $98 million, a…

A: ROE is return available to common stockholders of the entity. It is return left after payment of…

Q: A firm wishes to maintain a growth rate of 11 percent and a dividend payout ratio of 64 percent. The…

A: Calculation of debt equity ratio: Answer: Debt-equity ratio of firm is 2.40

Q: You are given the following information Jamuna Ltd Market price per share Tk. 400 Earnings per share…

A: “Since you have posted a question with multiple subparts, we will solve first three subparts for…

Q: Problem 1. Last year Justine Corp. had sales of P315,000 and a net income of P17,832, and its…

A: Return On Equity (ROE) = Profit Margin × Sales Turnover × Equity Multiplier

Q: National Co. had P24,000,000 in sales last year. The company's net income was P500,000, its total…

A: The ratio analysis helps to analyse the financial statements of the business with assets and…

Q: The most recent financial statements for Bello Co. are shown here: Income Statement Balance…

A: Sustainable growth rate is the maximum rate at which the company can grow without borrowing or…

Q: Martin Tucker Enterprises has total common equity of $645,500, sales of $1.15 million, and a profit…

A: The formula used is shown:

Q: Red Fire has a Debt/Equity Ratio of .15, and Equity Multiplier of 1.15, a return on sales of 6.4,…

A: Here, Debt Equity Ratio is 0.15 Equity Multiplier is 1.15 Return on Sales is 6.4 Asset Turnover is…

Q: Income Statement Balance Sheet Current Current Sales $9,300 $ 4,050 $ 2,625 assets liabilities…

A: External financing needed is the additional financing needed by the company if increase in…

Q: 1. ABC Had sales of P12,000,000 of which all were on credit. Its operations resulted to a gross…

A: Gross profit = Credit Sales × Gross profit ratio=P 12,000,000 × 60%=P 7,200,000 Cost of goods sold…

Q: (DuPont analysis) Triangular Chemicals has total assets of $100 million, a return on equity of 42…

A: As per the given information; Total assets = $100 millionReturn on equity = 42%Net profit margin =…

Q: Doublewide Dealers has an ROA of 10%, a 2% profit margin, and an ROE of 15%. What is its total…

A: ROA is return on assets and ROE is return on equity. Total assets turnover can be calculated using…

Q: A company has a Return on Equity of 0.2, a Profit Margin of 0.12 and Total Asset Turnover of 0.48.…

A: Return on Equity can be calculated using the DuPont formula. It breaks the calculation using three…

Q: Bowsman Fried Chicken Company has a debt-equity ratio of 0.80. Return on assets is 7.9%, and total…

A: Given the following information: Debt-equity ratio: 0.80 Return on assets: 7.9% Total equity:…

Q: Calculating Profitability Ratios Wims, Inc., has sales of $15.2 million, total assets of $9.8…

A: The Profit margin ratio measures the amount of net income earned with each sale. It measures the…

Q: Gardial & Son has an ROA of 9%, a 5% profit margin, and a return on equity equal to 19%. What is the…

A: Total Assets Turnover Ratio is the ratio between the company's sales or revenue with the total…

Q: Income Statement Balance Sheet Long-term debt 35,750 Fixed assets 68,550 Equity Current Sales…

A: In order to compute the sustainable growth rate, we first required to compute the ROE, which is:

Q: The most recent financial statements for Mandy Company are shown here: Income Statement Balance…

A: Sustainable growth rate (SGR) is a maximum growth rate for the company at which earnings will grow…

Question

DuPONT ANALYSIS Henderson’s Hardware has an ROA of 11%, a 6% profit margin, and anROE of 23%. What is its total assets turnover? What is its equity multiplier?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

The Cost of Equity and Flotation Costs Messman Manufacturing will issue common stock to the public for $30. The expected dividend and the growth in dividends are $3.00 per share and 5%, respectively. If the flotation cost is 10% of the issue’s gross proceeds, what is the cost of external equity, re?
Financial leverage MicrosoCortrepotied (MSFT) reported the following data (in millions) for a tern year Compute the profit margin, asset turnover, and financial leverage metrics using the expandedDuPont formula. Round profit margin, asset turnover, and financial leverage to two decimalplaces.Round return on stockholders’ equity to one decimal place.
Financial leverage Costco Wholesale Corporation (COST) and Wel-Mart Stroes Inc. (WMT)reported the following data (in milllions) for a recent year: Compute the return on stockholders equity. Round to one decimal place.
Selected information for Berry Company is as follows: Berrys return on equity rounded to the nearest percentage point is: a. 20%. c. 28%. b. 21%. d. 40%.
Henderson’s Hardware has an ROA of 11%, a 6% profit margin, andan ROE of 23%. What is its total assets turnover? What is its equity multiplier?
General Electric has a ROA of 11%, a 3.5% profit margin, and a ROE of 14.5%. What is its totalassets turnover? What is its equity multiplier?
DuPont Analysis Gardial & Son has an ROA of 12%, a 4% profit margin, and a return on equity equal to 20%. What is the company's total assets turnover? What is the firm's equity multiplier? Do not round intermediate calculations. Round your answers to two decimal places. Total assets turnover: Equity multiplier:
(DuPont analysis) Dearborn Supplies has total sales of $199 million, assets of $98 million, a return on equity of 33 percent, and a net profit margin of 7.9 percent. What is the firm's debt ratio? The company's debt ratio is nothing%. (Round to one decimal place.)
jPhone, Inc., has an equity multiplier of 1.44, total asset turnover of 1.73, and a profit margin of 11 percent. What is the company's ROE?
If Rooters, Inc., has an equity multiplier of 1.90, total asset turnover of 1.20, and a profit margin of 8 percent, what is its ROE?