A firm has a profit margin of 7% and an equity multiplier of 1.3. Its sales are $130 million, and it has total assets of $78 million. What is its ROE? Do not round intermediate calculations. Round your answer to two

Q: Provide Correct Solution please

A: Explanation:

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: urrent assets of NorthPole.com at 1.7 million, 3rd quarter $1.5 million ermanent current assets is:…

A: Current assets are those assets which can be used to pay for current laibilties that means short…

Q: A company hired you as a consultant to help estimate its cost of capital. You have obtained the…

A: The cost of equity can be estimated with the help of dividend discount model

Q: Gardial & Son has an ROA of 12%, a 2% profit margin, and a return on equity equal to 18%. What is…

A: According to DuPont analysis,  Return on assets = Net profit margin*Total asset turnover Return on…

Q: What is its P/E ratio?

A: SOLUTION:-    P/E Ratio = Market Value per share/ EPS (Earnings Per Share) Given EPS = $2.85…

Q: Henderson's Hardware has an ROA of 13%, a 8% profit margin, and an ROE of 18%. What is its total…

A: The Du Pont Equation is a method used to derive the Return on Equity. It is calculated as the…

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: The Balance Sheet of a firm has the following items of the Right Side: Short Term Debt $4,459 Long…

A: The objective of the question is to calculate the Market Price of Equity of the firm based on the…

Q: A firm has a tax burden ratio of 0.85, a leverage ratio of 1.5, an interest burden of 0.9, and a…

A: The conceptual formula is represented mathematically:

Q: A firm has sales of R23, total assets of R39 and total debt of R7. The net profit margin is 4%. What…

A: Return on equity; A measure of financial performance calculated by dividing net profit by…

Q: alculate the sustainable growth rate

A: Answer:-  Sustainable growth rate = 14.05 % Explanation:-   Total asset turnover = 1 / Capital…

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: 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: Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 1.7. Its sales are $90…

A: Return on equity is one of the ratios that tell about the financial position of the company. It can…

Q: jPhone, Inc., has an equity multiplier of 1.42, total asset turnover of 1.71, and a profit margin of…

A: In this question, we are required to determine the Return on Equity (ROE).

Q: Suppose a firm pays total dividends of $456,000 out of net income of $1.9 million. What would the…

A: Calculation of payout ratio:Hence, the payout ratio is 0.24.

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: The company’s ratios are: Current ratio = 1.58% Quick ratio = 1.53% operating margin = 3.49%…

A: The current ratio of a company shows whether it can pay-off the short-term debt from its current…

Q: 4.46 percent. at is this firm's debt-equity ratio? (Do not round intermediate cald ur answer to 2…

A: Dupont equation is quite used in calculating the return on equity using three ratio and have been…

Q: Grey Wolf, Inc., has current assets of $2,090, net fixed assets of $9,830, current liabilities of…

A: CURRENT ASSETS = 2090FIXED ASSETS = 9830CURRENT LIABILITY = 1710LONG TERM DEBT = 4520

Q: What is the cost of equity for a firm where the required return on assets is 15.71%, the cost of…

A:

Q: jPhone, Inc., has an equity multiplier of 1.35, total asset turnover of 1.63, and a profit margin of…

A: Equity Multiplier = 1.35 Total Asset Turnover = 1.63 Profit Margin = 7%

Q: Suppose a firm pays total dividends of $696,000 out of net income of $2.4 million. What would the…

A: Companies pay dividends to its shareholders from its profits.The quantum of dividends is decided by…

Q: s a consultant to Basso Inc., you have been provided with the following data: D1 = $0.68; P0 =…

A: To arrange the funds for the new investments or operations, firm offered various securities like…

Q: Assume that your firm has a return on assets of 14.7%, sales of $16,625,000, total assets of…

A: Here, Return on Assets14.70%Sales $ 1,66,25,000.00Total Assets $    47,50,000.00Return on…

Q: Henderson's Hardware has an ROA of 14%, a 6% profit margin, and an ROE of 19%. What is its total…

A: The objective of the question is to calculate the total assets turnover and the equity multiplier…

Q: What is the firm’s equity multiplier? (Please show work and explain)

A: Information Provided: Return on assets = 0.20 Return on equity = 0.25

Q: jPhone, Inc., has an equity multiplier of 1.44, total asset turnover of 1.73, and a profit margin of…

A: In Finance, Du-point analysis is conducted while making investment decision because it helps to…

Q: Ladders, Inc. has a net profit margin of 5.6% on sales of $49.1 million and $1.5 million of interest…

A: ROE and ROA are two profitability ratios which shows ratio of net income with Equity value of the…

Q: A firm has a profit margin of 35.92, return on assets of 25.86 and a debt to equity ratio of 1.489.…

A: The  calculation of return on equity ,Return of equity is the measure of company annual return as it…

Q: Use the Dupont identity to solve the following. The ABC Inc. has sales of $10,500, total assets of…

A: Solution: Dupont analysis is a measure to compute the firm’s Return in Equity (ROE). As per Dupont…

Q: Solve this Problem

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

Q: If the D/E ratio of a firm is 1.4, what is the firm's weight on equity? Hint: the formula is on your…

A: Debt to Equity Ratio = de = 1.4

Q: A firm has net working capital of R714.15, current liabilities of R2276.81 & inventory of R803.44.…

A: Net working capital = R714.15 Current liabilities = R2276.81 Inventory = R803.44    Using the given…

Q: A company hired you as a consultant to help estimate its cost of capital. You have obtained the…

A: The cost of equity can be calculated from the dividend discount model

Q: A firm has a profit margin of 4% and an equity multiplier of 1.9. Its sales are $130 million, and it…

A: Total asset turnover = Sales / Total assets = $130,000,000$78,000,000 = 1.666667