A bank with $10,000 in assets has ROA =2% and ROE - 10%. What is its leverage ratio (TA/Equity)?   A 2.5     B 5         C 4     D 1.25

Q: 3.RAM has net income of AED 12 million a profit margin of 6 percent, and an accounts receivable…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: > Assume the following Balance Sheet Accounts: Cash Accounts Receivable Inventory Fixed Assets Total…

A: Additional financing needed refers to the amount of money a business must raise in order to cover…

Q: A firm had a debt ratio of 1.20. The pretax cost of debt is 8% and the reqiured return on asset is…

A: Debt and Equity are two important sources of finance being used in business. Cost of debt and cost…

Q: ROA?

A: Definition of Operating ROA:Operating Return on Assets (ROA) measures a company's efficiency in…

Q: A firm has an ROE of 4%, a debt-to-equity ratio of 0.9, and a tax rate of 35% and pays an interest…

A: Variables in the question: ROE=4%Debt-to-equity=0.9Tax rate=35%Interest rate=7%

Q: Suppose First National Bank has $500 million of assets and $ $75 million of equity capital. If First…

A: Assets =$ 500 Million, Equity = $ 75 Million  ROA = 5%   Hence, ROA = Return  Assets 5%= Return $500…

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: need help

A: Step 1: Understand the formula for the given ratios: Return on Equity = Net Income/ Total EquityDebt…

Q: Suppose we have the following information: Sales = $112,851 Assets = $131,468 Net profit margin…

A: Return on equity is the ratio of net income to the value of equity. Return on equity measures the…

Q: Based on the key indicators tabulated in the table below and the readings and resources provided for…

A: In firm, A and firm B the p/e ratio is same for both the firms earning per share is high for firm…

Q: First National Bank has a debt-to-equity ratio of 3. Its weighted average cost of capital is 12.50%…

A: Cost of CapitalThe cost of capital refers to the expense a company incurs in order to finance its…

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: Evans Technology has the following capital structure. Debt Common equity 30% 70 The aftertax cost of…

A: WACC is the weighted average cost of capital. A company raises its capital from different sources.…

Q: . Calculate the Weights for debt, common equity, and preferred equity. (round final answers to 4…

A: A company can raise capital funding from different sources. Typically a company’s capital consists…

Q: For examples 1 and 2, assume the net cash flow is 2,000,000, the tax rate is 40% and the cost of…

A: The capital structure of a company is comprised of debt and equity. Both these sources of finance…

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: You were asked to estimate the cost of equity based on the three most commonly used methods and then…

A: Cost of equity: It represents the cost of raising equity capital for the firm to expand its…

Q: A bank has 100 in assets and 60 in liabilities. Suppose assets pay on average 6% and liabilities…

A: Expected rate of return on capital It is calculated as shown below. Expected rate of…

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: Consider a firm that has 15% of debt. The rate of return for debt is 6% and the rate of return for…

A: Weight of debt of firm(Wd) =15%

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

A:

Q: What does firm total asset turnover need to be if your total debt ratio is .2 and profit margin 9%…

A: The total asset turnover ratio is a financial indicator that assesses how well a firm uses all of…

Q: consider a company with ROE of 14.5% and a profit margin of 6.5%. if the total asset turnover is 1.8…

A: Debt equity ratio is a leverage ratio. It gives relative measure of debt to equity. Here Dupont…

Q: How would you interpret the Tier 1 Leverage Ratio for these 3 banks? What do these ratios mean? Bank…

A: The term tier 1 capital ratio refers to the ratio of a bank’s tier 1 or core capital.Financial…

Q: FINA's business risk (Ru) is 9% in the industry. The debt-to-equity ratio is 0.4. The cost of debt…

A: MM Proposition II refers to the theory that the cost of equity is considered to be directly…

Q: Advanced Micro Devices had a total debt ratio of .48 at one time. What is the equity multiplier? O…

A: Equity multiplier is calculated using following equation Equity multiplier = 11-Debt ratio

Q: need the answer with explanation

A:

Q: Solve this Problem

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

Q: Use Table 10. Suppose the bank in Table 10 loses $2 in loans. Calculate the new risk weighted…

A: Risk weighted capital ratio = (Capital tier 1 + Capital tier 2) / risk weighted assets.

Q: What is the Net Interest Margin (NIM)

A: Net Interest margin (NIM) is percentage of difference between interest income earned on loans and…

Q: ounterc

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

Q: Calculation of FCFE A company has the following information: Earnings before interest and taxes…

A: concept. Free cash flow to equity (FCFE) is a measure of how much cash is available to the equity…

Q: Destin Company Information: Total Assets $940,000 Total Liabilities $600,000 Cost of debt 5.8%…

A: Capital Asset pricing model (CAPM) With risk free rate (RF), beta and market return (MR), the…

Q: A firm has total book value of equity of $2 million, a market to book ratio (market price/book…

A: We need to use market to book value ratio to calculate market value per share.

Q: 3. Company WACC is 20%. Debt interest rate is 4% and D/ E ratio is 1,6. What is the cost of equity?…

A: Weighted Average Cost of Capital = WACC = 20% Cost of debt = 4% Debt equity Ratio = 1.6

Q: A company has the following information: Earnings before interest and taxes Interest expense Tax…

A: The free cash flow to equity(FCFE) is calculated using following equation

Q: Suppose TRF = 5%, M = 12%, and b;= 0.75, what is the cost of equity? 5.00% 10.25% 12.00% 6.00%

A: CAPM refers to the model that uses the risk factor and the returns prevalent in the market to…

Q: A firm has an equity multiplier of two and total assets of $300. If its return on equity is 10%,…

A: Equity Multiplier = 2 Total Assets = 300 Return on Equity = 10% Net Income = ?

Q: Help me

A: Explanation of Return on Asset:Return on Assets (ROA) measures a company's ability to generate…

Q: Suppose your firm has a market value of equity is $500 million and a market value of debt is $475…

A: Given: Market value of equity = $500 Million Market value of debt = $475 Million

Q: Assume that a company’s market beta equals 0.6, the risk-free rate is 5%, and the market return…

A: As per CAPM, Expected Return = Rf +Beta (Rm-Rf)

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.