A company wants to achieve a targeted ROA of 14% with an asset turnover of 3.0. What profit margin is required?
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Financial Accounting Question
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ROA of 14% with an asset turnover of 3.0.
What profit margin is required?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feeb91db4-69eb-41b7-ba8d-10b940756cbc%2Fa48ecab5-97af-460e-b7e6-8525845ac135%2F4f037ej_processed.jpeg&w=3840&q=75)
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- Consider a company that pays out all its earnings (i.e., the payout ratio = 1 or plowback/retention ratio=0). The required return for the firm is 13%. Compute the intrinsic P/E if its ROE is 15%. Compute the intrinsic P/E if its ROE is 20%. Discuss why your answers to parts (a) and (b) differ or do not differ from one another. Suppose that the company’s ROE is 13%. Compute its intrinsic P/E value. Would the answer to part (d) change if the company retained half of its earnings instead of paying all of them out? Discuss why or why not.If Apex, Inc. has an ROE = 10 percent, equity multiplier = 3, and profit margin of 5 percent, what is the total asset turnover ratio?Need answer
- Golden Goodness (GG) has an investment center that had the following data: Operating Income $28,000 Sales $350,000 Invested assets $175,000 PMB has set a minimum acceptable rate of return at 14%. Using the information, answer the following questions. You must include what type of number it is (%, $, etc.) What is the profit margin? What is the investment turnover? What is the return on investment?Average Rate of Return Method, Net Present Value Method, and Analysis for a service companyNeed answer
- Manufacturer A has a profit margin of 2.0%, an asset turnover of 1.7, and an equity multiplier of 4.9. Manufacturer B has a profit margin of 2.3%, an asset turnover of 1.1, and an equity multiplier of 4.7. How much asset turnover should manufacturer B have to match manufacturer A's ROE?If a firm has a contribution margin of $59,690 and a net income of $12,700 for the current month, what is their degree of operating leverage? A. 0.18 B. 1.18 C. 2.4 D. 4.7If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month, what is their degree of operating leverage? 0.21 1.21 2.4 5.7
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