A firm has a TATO of 2x, a nPM of 4%, and a DR of 20%. Their ROA will be %. % and their ROE will be A. 3,6 B. 8,10 C. 8,12 D. 12,40
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- Suppose TRF = 5%, M = 12%, and b; = 0.75, what is the cost of equity? 5.00% 10.25% 12.00% 6.00%The market price of an equity share with face value of Rs 10 is Rs 35, with ROI of 24% and cost of capital of 18%, what will be the Dividend payout ratio?(Use Walter model) a. 10% b. 25% c. 0% d. Cannot be determinedh. Calculate the total return % in each of the following instances: a. Do = $2.00, dividend growth = 4%, Po = $50, P: = $60 b. Po = $32, Dividend yield % = 5%, P1 = $30 c. Dividend Yield = 4%; Capital Gain = $20; D1 = $4
- If financial leverage of a firm is 4, Interest 6,00,000, Operating Leverage is 3, Variable cost to sales is 66.66%, Income tax rate is 30%, Number of Equity Shares 1, 00, 000. Calculate fixed cost and EPS of the firms. (For your reference, OL = Contribution/EBIT; FL = EBIT/EBT and CL = OL*FL)Firm has net working capital of R800, current liabilities of R2500 & inventory of R600. a) What is the current ratio? b) What is the quick ratio?Below, inputs have been arrived for the XYZ company. Using CAPM calculate its cost of equity. (Observe 2 decimal places)
- This is how to get a fair P/E ratio of a company using NOPAT growth, ROIIC (ROIC), and Cost of capital NOPAT growth: 10%ROIIC: 20% → Fair P/E: 32.3Cost of capital: 6.7% read the picture and it shows the instruscture, however, it does not say the specific stpes of how they get the fair P/E mulitple of 32.3. it summarlized without showing steps. So please show the step of how to get this result which is 32.3 Price to earnings ratio. U may use DCF for this! thank you!The lowest rate of return possible is:a. 0%b. -∞c. -100%d. the company’s MARRA company will produce $3.00 in earnings per share at the end of the year. Reinvested earnings can produce a 14% return on equity. What is the PVGO if the company decides on a 30.0% plowback policy? Assume that investors have a 9.0% required rate of return. a. $10.42 b. $12.56 c. $13.86 d. $15.56