Henderson's Hardware has an ROA of 15%, a 4.5% profit margin, and an ROE of 25%. What is its total assets turnover? Do not round intermediate calculations. Round your answer to two decimal places What is its equity multiplier? Do not round intermediate calculations. Round your answer to two decimal places.

Q: Assume that you are a consultant to Morton Inc., and you have been provided with the following data:…

A: Current Dividend = d0 = $1.4Current Price of Stock = p0 = $36Growth Rate = g = 4.8%

Q: A firm has a profit margin of 7% and an equity multiplier of 1.3. Its sales are $130 million, and it…

A: DuPont equation can be used to find the ROE (return n equity). This equation requires profit margin,…

Q: ntly trading at a forward P/D ratio of 25, a forward P/E ratio of 20, a P/B ratio of 4 and P/S ratio…

A: Ratios are very important in valuation of company and the stock and comparing the companies.

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A: The profit margin is 7%.Equity multiplier is 1.9.Sales are $230 million.Total assets are $92…

Q: a) A firm has sales of R23, total assets of R39 and total debt of R7. The net profit margin is 4%.…

A: Return on Equity A company's net income is divided by the equity of its shareholders to calculate…

Q: Estimate its cost of common equity, Maxell and Associcates recently hired you. Obtain the following…

A: The question is based on the calculation of share value based on the constant growth dividend…

Q: What is its P/E ratio?

A: SOLUTION:-    P/E Ratio = Market Value per share/ EPS (Earnings Per Share) Given EPS = $2.85…

Q: Henderson's Hardware has an ROA of 13%, a 8% profit margin, and an ROE of 18%. What is its total…

A: The Du Pont Equation is a method used to derive the Return on Equity. It is calculated as the…

Q: The following financial information is for Cullumber Company. CULLUMBER COMPANY Balance Sheets…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Company A's simple EPS is $1 and diluted EPS is $.50. Company B's simple EPS is $1.5 but his diluted…

A: EPS & Diluted EPS: These are used to measure the profitability of any company. EPS indicates how…

Q: Assume that you are a consultant to Broske Inc., and you have been provided with the following data:…

A: Next dividend (D1) = $0.80 Current price (P0) = $32.50 Growth rate (G) = 8.00%   Formula Cost of…

Q: Henderson's Hardware has an ROA of 15%, a 5% profit margin, and an ROE of 23%. What is its total…

A: The term return on assets is the measure of returns that are generated using the total assets of the…

Q: Bustamante Company has income from operations of $24,480, invested assets of $85,000, and sales of…

A: Profit margin =  income from operations  / Sales Investment turnover = Sales / invested assets…

Q: Pont Analysis Gardial & Son has an ROA of 12%, a 4% profit margin, and a return on equity equal…

A: DuPont is used to determine the return on equity and in this return on equity is broken down into…

Q: If a company decides to increase its ratio of total debt / total assets from 30% to 50% as a means…

A: ROE that is return on equity is the amount of return earned on the equity of the entity. It is the…

Q: A firm wishes to maintain an internal growth rate of 7.9 percent and a dividend payout ratio of 20…

A: The total asset turnover refers to the measure of the efficiency of the company in generating…

Q: Gates Appliances has a return-on-assets (investment) ratio of 20 percent. a. If the…

A: Return on equity(or ROE) = Return on assets×Equity multiplier Equity multiplier is calculated as…

Q: A firm has an ROE of 2%, a debt/equity ratio of 0.6, a tax rate of 30%, and pays an interest rate of…

A: A financial term known as operating return on assets, or ROA, gauges how profitable and efficient an…

Q: 3. ABC Corp.’s equity multiplier is 1.25. What is its debt ratio?     4.Easy Corp.’s return on…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

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: Bank ABC has a Return on Equity (ROE) equal to 22%, a total debt ratio (debt/total assets) equal to…

A: Here,Return on Equity (ROE) is 22%Total Debt Ratio is 0.9Asset Utilisation Ratio is 0.05

Q: A firm wishes to maintain an internal growth rate of 8.25 percent and a dividend payout ratio of 37…

A: Given :  Internal Growth Rate8.25%Dividend Payout ratio3.70%Current Profit margin = 5.9%

Q: Company X is competing with company Y. These are their ratios: x y Current Ratio = .223 Current…

A: Current Ratio It is an accounting ratio which measures the company's ability to pay short term debt…

Q: Gates Appliances has a return-on-assets (investment) ratio of 20 percent. a. If the…

A: Return on equity(or ROE) = Return on assets×Equity multiplier Equity multiplier is calculated as…

Q: Vhat is the company's total assets tumover? What is the firm's

A: The formula to calculate Return on assets is Profit margin multiplied by the Asset Turnover. To…

Q: Company X has a profit margin of 0.08, asset turnover of 1.3, and equity multiplier of 4.0. Which of…

A: Return on Equity (ROE) may be a money related metric that assesses a company's productivity in…

Q: answer

A: A) Equity-total assets ratio = 100% - Debt-Total assets ratioEquity-total assets ratio = 100% -…

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A: Vertical analysis of the financial statement means the expression of each item of the financial…

Q: What is the cost of equity for a firm where the required return on assets is 15.71%, the cost of…

A:

Q: Assume the following ratios are constant. Total asset turnover Profit margin Equity multiplier…

A: Sustainable growth rate is used to estimate cash flows projections and for taking decision about…

Q: General Electric has a ROA of 11%, a 3.5% profit margin, and a ROE of 14.5%. What is its total…

A: Given: ROA = 11% Profit margin = 3.5% ROE = 14.5%

Q: 16) Compute the required values under the following circumstances: (Do not round intermediate…

A:

Q: What is the firm’s equity multiplier? (Please show work and explain)

A: Information Provided: Return on assets = 0.20 Return on equity = 0.25

Q: Ace Industries has current assets equal to $9 million. The company's current ratio is 2.5, and its…

A: Current assets = $9,000,000 Current ratio = 2.5 Quick ratio = 2.1

Q: Solve this Problem

A: The problem requires the determination of net income. Net income pertains to the amount of…

Q: One item is omitted from each of the following computations of the return on investment: Return…

A: The objective of the question is to find the missing values in the given equations. The equations…

Q: Needham Pharmaceuticals has a profit margin of 3.5% and an equity multiplier of 1.5. Its sales are…

A: Profit margin = 3.50% Equity multiplier = 1.50 Sales= $100 Total assets = $60 million

Q: ounterc

A: As per regulatory capital requirements under Basel III, the maximum dividend as percentage of…

Q: Red Fire has an equity multiplier of 1.6, a return on assets of 10.35 percent, and an asset turnover…

A: Return on equity refers to the returns generated by the company from its shareholders' equity.…

Q: Frank's Used Cars has sales of $860316, total assets of $670249, and a profit margin of 0.12. The…

A: Information Provided: Sales = $860,316 Total assets = $670,249 Profit margin = 0.12 Equity…

Q: Use the following information to complete the balance sheet below. Sales are $8.7 million, capital…

A: Sales = s = $8.7 millionCapital Intensity Ratio = cir = 2Debt ratio = dr = 65%Fixed Assets Turnover…

Q: A firm has a profit margin of 4% and an equity multiplier of 1.8. Its sales are $370 million, and it…

A: The objective of this question is to calculate the Return on Equity (ROE) for a firm given its…

Q: Needham Pharmaceuticals has a profit margin of 2% and an equity multiplier of 2.0. Its sales are…

A: The question is based on concept of ratio analysis based on DuPont method. Formula as, ROE=Profit…

Q: 17. Selfridges, an upscale London retailer, has a current ratio of 2.2. Which of the following…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: A company has an EPS of $3.30, a book value per share of $32.34, and a market/book ratio of 3.1x.…

A: EPS=3.30 Book value per share =32.34 Market book ratio = 3.1x

Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.