firm has a profit margin of 28.12, return on assets of 31.2 and a lebt to equity ratio of 1.216. What is the firm's return on equity ROE)? 19.44% None of these options are correct O 10.67% O69.14%
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- QUESTION 17 A company has a Return on Equity of 0.39, a Profit Margin of 0.2 and Total Asset Tumover of 0.55. Using this information calculate the Equity Multiplier?…Question in photo And return on equity is: 17.46% according to m and m proposition A. 13.09% B. 17.46% C. 13.16% D. 15% E. 16.70%QUESTION 17 A company has a Return on Equity of 0.23, a Profit Margin of 0.1 and Total Asset Turnover of 0.4. Using this information calculate the Equity Multiplier?
- Marked out of 2 P Flag question Find the Risk Free Rate given the cost of equity 12%, the Expected Return on Market Portfolio is 16% and the Beta for Stock Y is 0.6. Select one: O a. 2% O b. 4% O c. None O d. 6%Accounting Use the following information: Stock A B Good state 12% 17% Bad state 0% -1% Assume there is 60% probability that the good state occurs and 40% chance the bad state occurs. What is the expected return of a portfolio that is 9% invested in stock A and 1-9% invested in B? (Please use 5 decimal places, this should be written in percentage return, so an answer of 23.143% should be written at .23143)The asset of company X have a beta equal to 1. Assume that company’s debt has a beta to 0.5 and that X’s equity has a Beta equal to 2, consider an investor who holds 10% of company’s debt and 10% of the company’s equity, the beta of the investor’s portfolio is equal to? A. 0.25 B. 1 C. 1.25 D. 0.1
- Given Analysis of unlevered equity beta with risky debt beta = .30 Firm1 (F1) Firm2 (F2) Firm3 (F3) Company Name b. Solution Levered Equity Betas Analysis of Sterling Analysis based on simple average of unlevered equity betas beta unlevered D/E 1.79 1.98 1.71 0.20 Tax Rate Debt/Equity Assumed Capitalization Debt Betas 0.30 0.30 0.30 0.31 0.24 0.22 beta debt 38% 0.30 Average D/E 0.20 a. Solution: Unlevered Equity Betas beta leveredState of Economy Probability ABC Company Expected Return Expected Return XYZ Company Very Poor 0.30 -9% -19% Poor 0.25 -8% -6% Good 0.15 8% 9% Very Good 0.30 34% 33% Expected Return 6.70% 4.05% A) Calculate the covariance of the portfolio. Please answer as a decimal to 4 decimal places. Answer:Time left 0:56:26 Dhofar Silicon Services has a Beta = 1.4. The risk free rate on a treasury bill is currently 8.2% and the market return has averaged 16%.What is the cost of equity ? Select one: O a. None of the options O b. 0.2912 O c. 0.6912 O d. 0.1912 O e. 0.3912 NG 91% ails AI F3 F4 F5 *- F6 F7 F8 F9 F10 @ %23 2$ 3 4. 7 8 W R T Y U S DEFI GYH1J-K C V BY NiM この
- CONCEPTUAL: RETURN ON EQUITY Which of the following statements is most correct? (Hint: Work Problem 4-16 before answering 4-17, and consider the solution setup for 4-16 as you think about 4-17.) a. If a firms expected basic earning power (BEP) is constant for all of its assets and exceeds the interest rate on its debt, adding assets and financing them with debt will raise the firms expected return on common equity (ROE). b. The higher a firms tax rate, the lower its BEP ratio, other things held constant. c. The higher the interest rate on a firms debt, the lower its BEP ratio, other things held constant. d. The higher a firms debt ratio, the lower its BEP ratio, other things held constant. e. Statement a is false, but statements b, c, and d are true.1. What is the Stock Price when the Equity Ratio is 75%? a. 107.14 b. 52.08 c. 29.41 d. 75% e. 25% 2. What is the Stock Price when the Equity Ratio is 50%? a. 107.14 b. 52.08 c. 29.41 d. 75% e. 25% 3. What is the Stock Price when the Equity Ratio is 25%? a. 107.14 b. 52.08 c. 29.41 d. 75% e. 25% 4. What is the equity ratio on the optimal capital structure? a. 107.14 b. 52.08 c. 29.41 d. 75% e. 25% 5. What is the debt ratio on the optimal capital structure? a. 107.14 b. 52.08 c. 29.41 d. 75% e. 25% 6. What is the Stock Price on the optimal capital structure? a. 107.14 b. 52.08 c. 29.41 d. 75% e. 25%A stock is selling today for $40 per share. At the end of the year, it pays a dividend of $2 per share and sells for $44. Required: a. What is the total rate of return on the stock? b. What are the dividend yield and percentage capital gain? c. Now suppose the year-end stock price after the dividend is paid is $36. What are the dividend yield and percentage capital.gain in this case? Complete this question by entering your answers in the tabs below. ces Required A Required B Required C What is the total rate of return on the stock? (Enter your answer as a whole percent.) Rate of return % Reguired A Required B > a ere to search