Suppose a firm pays total dividends of $696,000 out of net income of $2.4 million. What would the firm’s payout ratio be

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: Suppose a firm has the following information: Cash = $500,000; shortterm investments = $2.5 million;…

A: Cash = $500,000 short term investment= $2.5 million accounts receivable = $1.2 million inventories =…

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: If a firm has an EV of $1,270 million and EBITDA of $388 million, what is its EV ratio? (Round your…

A: Enterprise Value(EV) Analysts frequently utilize enterprise value/financial metrics to swiftly…

Q: A firm has an ROE of 4 percent, a debt/equity ratio of 0.4, a tax rate of 35 percent, and pays an…

A: D/E = 0.40Let's take Equity = ESo,Debt = 0.40EAsset = 1.4E Net Income = 0.04E Interest = Interest…

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: A firm has 260,000 shares outstanding, sales of RM1.94 million, net income of RM226,400, a…

A: Here, Outstanding Shares is 260,000 Sales is RM1,940,000 Net Income is RM226,400 Price Earning Ratio…

Q: A firm has EBIT of $30 million. It has debt of $100 million and the cost of debt is 7%. Its…

A: The value of unlevered firm can be calculated by using equation below.Unlevered firm value…

Q: Jacks has current assets equal to $3 million. The company's current ratio is 1.5, and its quick…

A: Formula: Current ratio = Current Assets / current liabilities

Q: A firm's earnings per share is $4.11 and its price to earning ratio is 9.7. What is the firm's stock…

A: Step 1: The calculation of the stock price AB1Earning per share $      4.11 2Price-to-earning…

Q: A firm has a tax burden of 0.7. a leverage ratio of 1.3, an interest burden of .8, and a…

A: We need to use Du Pont method to calculate ROE. The equation isROE = Tax burden ratio*Interest…

Q: A firm has EBIT OF $500,000 and depreciation expense of $24,000. Fixed charges total $44,000.…

A: The cash coverage ratio is the ratio that tells about the availability of cash with the firm to bear…

Q: A firm has an ROE of 4 percent, a debt/equity ratio of 0.4, a tax rate of 35 percent, and pays an…

A:

Q: Consider the following information on a firm: Beginning book value = $100,000; Ending book value =…

A: The abnormal earnings valuation model is the method for determining a company's equity value based…

Q: Calculate the enterprise value of a firm with a market capitalization (market value of equity) of…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: PAGGYTY Industries has current assets equal to $4 million. The company's current ratio is 2.0, and…

A: Formula: Current ratio = Current Assets / Current liabilities

Q: What are the annual sales for a firm with $800,000 in debt, a total debt ratio of .06, and an asset…

A: Debt = 800,000 Total Debt ratio= 0.60 Asset turnover ratio =2

Q: Triangular Chemicals has total assets of $ 97 million, a return on equity of 3 5 percent, a net…

A: Equity multiplier = Total assets / Total stockholders equity.2.56 = $97,000,000 / Total stockholders…

Q: If the value of invested capital today is $4 million and this firm has $2 million in…

A: Invested Capital: It refers to that money that is invested by shareholders, lenders, and debt…

Q: 2. What would be the WACC if the company in question 1 changed its debt-to-equity ratio to zero?

A: The debt to equity ratio is the proportion of debt of total equity in total invested capital. It is…

Q: A company has an expected EBIT of $18,000 in perpetuity, a tax rate of 35%, and a debt-to- equity…

A: The unlevered cost of capital is the cost of capital for a company if it had no debt. It represents…

Q: You are analysing NBM firm and obtained the following information: FCFF reported as R198 million,…

A: FCFE is the free cash flow to the equity   The formula for the same:   FCFE = FCFF - Interest (1-tax…

Q: A company has current liabilities of $500 Million, and its current ratio is 2.0. If the firm’s quick…

A: Current assets is shown the assets of the company. It includes the Cash, Cash Equivalent, bills…

Q: The following data applies to a firm: Interest charges=P50,000.00; Sales = P300,000.00; Tax…

A: Here in this case we are required to calculate interest covered ratio. We first need to understand…

Q: constant, use the AFN equation to determine the firm's self-supporting growth rate-in other words,…

A: The maximum growth rate that an organization can accomplish without having recourse to outside money…

Q: What is the FCFF of a firm with revenues of $229 million, operating profit margin of 47%, tax rate…

A: Free cash flow (FCF) is a financial metric that represents the cash a company generates from its…

Q: Solve this Problem

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

Q: Ace Industries has current assets equal to $3 million. The company's current ratio is 1.5, and its…

A: Introduction: Current liabilities: The Liabilities which are to be paid with in one year period of…

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: Suppose a firm's profits increase 83 percent after sales change from $3.45 million to $4.85 million.…

A: Solution:Degree of operating leverage refers to the ratio of percentage change in firm’s profit to…

Q: Suppose a firm has the following information: Cash = $500,000; short-term investments = $2.5…

A: Operating current assets are the assets such as, cash, inventory and accounts receivables that are…

Q: If a firm has an EV of $820 million and EBITDA of $187 million, what is its EV ratio?

A: Given: EV = $820 million EBITDA = $187 million

Q: 4) Finance You estimate that the net income for a company next year is a uniform distribution with a…

A: The maximum and minimum are away from mean by number of standard deviations and that depends on the…

Q: A firm has net fixed assets of $38,215, long-term debt of $560, cash of $22,400, accounts payable…

A: Working capital is the difference between current assets and current liabilities of an organization.…

Q: If A7X Company has an ROA of 14 percent and a payout ratio of 16 percent, what is its internal…

A: An internal growth rate for a public company is calculated by first using the return on assets…

Q: Get Answer

A: Given:Sales = $ 3500Total Assets = $ 3200Profit Margin = 5 %Total Debt Ratio = 41 % To solve for the…

Q: If you owned a company, would you prefer the market value of its assets to rise $10million or the…

A: The fixed assets are the long-term assets that the company uses for more than a year. The assets…

Q: Suppose the growth rate of a firm's profits is 5%, the interest rate is 6%, and the current profits…

A: Given details are : Current profits of firm = $100 million Growth rate = 5% Interest rate = 6% From…

Q: A firm has a ROE of 16.875%, asset turnover of 2.5, and an equity multiplier of 1.5. If the firm has…

A: Net Income: It is a computation that estimates the amount of total incomes that surpass total costs.…

Q: What is the ROE for a firm with a times interest earned ratio of 2, a tax liability of $1 million,…

A: Variables in the question:Times interest earned ratio=2Tax liability=$1 millionInterest…

Q: Need answer

A: Return on Equity (ROE) is a measure of a company's profitability that calculates how much profit is…

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.