Use the following data to compute each firm's net profit margin, total asset turnover, equity multiplier, and return on equity. (Note: The following dollar values are expressed in millions of U.S. dollars.) Firm A B C Common Equity Sales $28,141 $8,700 $10,636 $1,563 $5,641 $2,431 $18,158 $180 $28,199 $10,669 $9,516 $1,496 Total Assets Net Income Net Profit Margin 14.70% 0.99% Total Asset Turnover 3.22x 0.34x Referring to this data, which of the following conclusions is true about the companies' ROES? Equity Multiplier 3.23 2.64 Return on Equity Firm A's equity multiplier indicates that it has the lowest debt ratio of the three firms. O Compared to firms B and C, company A's exceptional ROE performance appears to result from its superior efficiency in using its asset base and its heavily leveraged capital structure. O Compared to firms B and C, company A does the best job of containing its costs and managing its tax obligations. O Compared to companies A and C, company B uses more financial leverage and exhibits the highest debt ratio.

If a bank has the following ratios, it can pay up to of its earnings as dividends. Tier 1 leverage = 4.7% Tier 1 common equity risk-based = 7.2% %3D Tier 1 risk-based 8.3% Total capital risk-based = 11%

Loreto Inc. has the following financial ratios: asset turnover = 2.40; net profit margin (i.e., net income/sales) = 5%; payout ratio = 30%; equity/assets = 0.40.   a. What is Loreto's sustainable growth rate? b. What is its internal growth rate?

Based on the following information, calculate the sustainable growth rate for Kaleb's Heavy Equipment: Profit margin Capital intensity ratio Debt-equity ratio Net income Dividends 8.1% .51 .67 $ 29,000 $19,720

The calculation of WACC involves calculating the weighted average of the required rates of return on debt, preferred stock, and common equity, where the weights equal the percentage of each type of financing in the firm’s overall capital structure. Q1. ________is the symbol that represents the cost of preferred stock in the weighted average cost of capital (WACC) equation.   Q2. Avery Co. has $3.9 million of debt, $2 million of preferred stock, and $2.2 million of common equity. What would be its weight on debt?   a. 0.27   b. 0.25   c. 0.48   d. 0.20 Q1. Option 1 rS or Option 2 rD or Option 3 rP or Option 4 rE   Please provide the correct answers. Thank you!

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