What is the return on equity for Firm A and Firm B? Question:Firm A and Firm B have debt-total asset ratios of 35% and 25%and returns on total assets of 9% and 13%, respectively. What isthe return on equity for Firm A and Firm B? (Do not roundintermediate calculations. Enter your answers as a percentrounded to 2 decimal places, e.g., 32.16.)

FIRM ADebt-Total Assets = 35%Equity-Total Assets = 1-35% Equity-Total Asset = 65%Return on Equity =…

Answered: Question: Firm A and Firm B have…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 17MC: If equity equals $100,000, which of the following is true? A. Assets exceed liabilities by $100,000....

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Firm A and Firm B have debt/total asset ratios of 33 percent and 23 percent and returns on total assets of 7 percent and 10 percent, respectively. What is the return on equity for each firm? (Do not round Intermedlate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Firm A return on equity Firm B return on equity
Assume the following relationships for the Caulder Corp.: Sales/Total assets Return on assets (ROA) Return on equity (ROE) Calculate Caulder's profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Do not round intermediate calculations. Round your answers to two decimal places. Profit margin: Debt-to-capital ratio: % % 1.9x 8.0% 13.0%
Required: Compute the following: (For Requirements 1 to 4, enter your percentage answers rounded to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) 1. Gross margin percentage. 2. Net profit margin percentage. 3. Return on total assets. 4. Return on equity. 5. Was financial leverage positive or negative for the year? 1. Gross margin percentage % 2. Net profit margin percentage % 3. Return on total assets % 4. Return on equity % 5. Financial Leverage
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Consider this simplified balance sheet for Geomorph Trading: Current assets Long-term assets $ 245 Current liabilities Long-term debt 630 Other liabilities Equity $ 875 Required: a. What is the company's debt-equity ratio? (Hint: debt = Current liabilities, Long-term debt, and Other liabilities) Note: Round your answer to 2 decimal places. b. What is the ratio of total long-term debt to total long-term capital? Note: Round your answer to 2 decimal places. c. What is its net working capital? d. What is its current ratio? Note: Round your answer to 2 decimal places. $ 170 215 140 350 $ 875 a Debt-equity ratio b. Long-term debt-to-capital ratio c. Net working capital d. Current ratio
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For the Year Ended December 31, 2019: $ 30,200 11,300 6,000 $ 12,900 3,200 Net revenues Cost of services provided Depreciation expense Operating income Interest expense Вook Income tax expense 3,500 Net income $ 6,200 At December 31, 2019: Print Assets $ 3,200 9,500 83,400 Cash and short-term investments Accounts receivable, net Property, plant, and equipment, net rences Total assets $ 96,100 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Notes payable (long term) Paid-in capital Retained earnings $ 1,600 1,700 49,400 14,000 29,400 Total liabilities and stockholders' equity $ 96,100
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The Crane Products Co. currently has debt with a market value of $275 million outstanding. The debt consists of 9 percent coupon bonds (semiannual coupon payments) which have a maturity of 15 years and are currently priced at $1,418.61 per bond. The firm also has an issue of 2 million preferred shares outstanding with a market price of $11 per share. The preferred shares pay an annual dividend of $1.20. Crane also has 14 million shares of common stock outstanding with a price of $20.00 per share. The firm is expected to pay a $2.20 common dividend one year from today, and that dividend is expected to increase by 5 percent per year forever. If Crane is subject to a 40 percent marginal tax rate, then what is the firm's weighted average cost of capital? Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy…

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Question: Firm A and Firm B have debt-total asset ratios of 35% and 25% and returns on total assets of 9% and 13%, respectively. What is the return on equity for Firm A and Firm B? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)