If we know that a firm has a net profit margin of 4.5 % total asset turnover of 0.65, and a financial leverage multiplier of 1.47, what is its​ ROE? What is the advantage to using the DuPont system to calculate ROE over the direct calculation of earnings available for common stockholders divided by common stock​ equity?

Q: If we know that a firm has a net profit margin of 4.5%, total asset turnover of 0.72, and a…

A: Dupont analysis is an evaluation method that determines the three components of return on equity…

Q: Suppose a firm pays total dividends of $35,000 out of net income of $200,000. What would the firm's…

A: Total dividends= $35,000 Net income= $200,000 Firm's payout ratio=?

Q: A firm has a tax burden ratio of 0.85, a leverage ratio of 1.25, an interest burden of 0.7, and a…

A: The conceptual formula is represented mathematically:

Q: A company has a profit margin of 25%, an asset turnover ratio of 1.5, and an equity multiplier ratio…

A: Return on equity is a ratio which measures the return to company in terms of equity. It indicates…

Q: Compute Topp Company’s price-earnings ratio if its common stock has a market value of $20.54 per…

A: Price to earning ratio = Market price per share/ Earnings per share

Q: а. samm Corp had salės of $300 illion, a net pront margin of 8% and a dividend payout ratio of 30%.…

A: Sales = 300,000,000 Net Income = Net Profit Margin * Sales Net Income = 8%*300,000,000 Net Income =…

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: Assume the following relationships for the Caulder Corp.:Sales/Total assets…

A: The question is based on the concept of ratio analysis of financial data of a company.

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: High mountain foods has an equity multiplier of 1.72 a total asset turnover of 1.16 and a profit…

A: The return on assets is calculated as the product of profit margin and asset turnover

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: Market Value Added is the difference between the capital contributed to the company by bondholders…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

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: "s Hardwoods has a dividend payout ratio of 45 percent, a return on assets of 9.4 percent, anc quity…

A: Growth rate can be calculated from the return on equity and retention ratio of the company that is…

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: Some of the financial ratios of V, W, X, Y, and Z companies are calculated and presented in the…

A: Financial analysis is the analysis of a corporation on the basis of the financial items that are…

Q: what is the estimated cost of ordinary equity?

A: Cost of ordinary equity refers to the cost incurred by the company for issuing new ordinary equity.…

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: If Roten Rooters, Inc., has an equity multiplier of 1.54, total asset turnover of 1.80, and a profit…

A: ROE gives a metric to evaluate investment returns. It measures the profitability of business in…

Q: Assume that an average firm in the office supply business has a 6% profit margin, a 40%total…

A: Computation:

Q: Gardial & Son has an ROA of 11%, a 5% profit margin, and a return on equity equal to 16%. What is…

A: given, ROA = 11% PROFIT MARGIN = 5% ROE=16%

Q: Loreto Inc. has the following financial ratios: asset turnover = 1.60; net profit margin (i.e., net…

A: Ratio analysis is a tool that establishes a relationship between the different items. It is used to…

Q: If Rogers, Incorporated, has an equity multiplier of 1.57, total asset turnover of 1.70, and a…

A: The ROE is a measure of how well a company performs with the money that its shareholders have…

Q: The book value per share  a. is usually a close approximation of the market price per share. b. is…

A: Book value is used by the investor for analyzing his investment worth.

Q: The following information relates to three companies in the same industry…

A: The Price-Earnings Ratio: The price-earnings ratio is a relative measure of the company's stock…

Q: multiplier is 1.64. Using DuPont analysis, determine if the company's return on equity is above or…

A: DuPont Analysis: DuPont Analysis helps to understand the three components of Return on Equity which…

Q: Based on the following information, calculate the sustainable growth rate for Kaleb's Welding…

A: In the given question return on equity will be Calculated with the help of following formula  Return…

Q: If we know that a firm has a net profit margin of 4.3 %​, total asset turnover of 0.77​, and a…

A: The computation of ROE is as follows: Hence, the return on investment is 4.50%

Q: A company has sales of $200 million, NOPAT of $12 million, netincome of $8 million, net operating…

A: Given information: Sales amounted to $200 million, NOPAT of $12 million, Net income of $8 million,…

Q: For fiscal year 2015, Costco Wholesale Corporation (COST) had a net profit margin of 2.05%, asset…

A: Here, Net Profit Margin is 2.05% Asset Turnover Ratio is 3.48 Equity Multiplier is 3.15

Q: Which of the following statements is the most reasonable conclusion from the given information below…

A: Return on assets indicates that how much is the company is profitable regarding it's assets, it…

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: Suppose a firm pays total dividends of $420,000 out of net income of $3.7 million. What would the…

A: Dividend payout ratio refers to the fraction of net income that a company pays to its shareholders…

Q: ver of 2.6, and a profit margin of 4.3 percent, what is its ROE? (Do not round intermediate…

A: The return on equity (ROE) measure is calculated by dividing net income by shareholders' equity. ROE…

Q: Consider a retail firm with a net profit margin of 3.5%, a total asset turnover of 1.8, total assets…

A: ROE is Return on equity, which means how much net income has been attributable to the 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: A company has a Returm on Equity of 0.39, a Profit Margin of 0.2 and Total Asset Turnover of 0.55.…

A: Here, Return on Equity is 0.39 Profit Margin is 0.2 Total Asset Turnover is 0.55

Q: Vhich of the following statements is the most reasonable conclusion from the given formation below…

A: Solution Concept Return on equity is given as =net profit/total equity Working note ROE of ABC…

Q: You are given the following information on Kaleb's Heavy Equipment: Profit margin Capital intensity…

A: The formula for the calculation of sustainable growth rate is Sustainable growth rate=ROE x b1-ROE…

Q: Blue Co. has a total liabilities of P400,000 on which 40% is a long-term liability. The non-current…

A: = Total liabilities - Long term liability = 400,000 - (40% * Total liabilities )     {Given} =…

Q: As an Analyst you were tasked to compute for the Weighted Average Cost of Capital of various…

A: Weighted average cost of capital (WACC) is the average cost of capital of the firm from all sources…

Q: Triano Train Transports shows the following on their most recent balance sheet: Current Assets:…

A: Ratio is a tool which is used to measure the firm’s performance and growth by establishing relation…