A firm, Sterling Corp., has a debt-to-asset ratio of 68%, $310,000 in total debt, and a net income of $65,000. Calculate the Return on Equity (ROE) for Sterling Corp.
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- Is it possible to determine net income?Using the Du Pont method, evaluate the effects of the following relationships for the Butters Corporation. a. Butters Corporation has a profit margin of 5 percent and its return on assets (investment) is 22.5 percent. What is its assets turnover? (Round your answer to 2 decimal places.) b. If the Butters Corporation has a debt-to-total-assets ratio of 55.00 percent, what would the firm's return on equity be? (Input your answer as a percent rounded to 2 decimal places.) c. What would happen to return on equity if the debt-to-total-assets ratio decreased to 50.00 percent? (Input your answer as a percent rounded to 2 decimal places.)Is it possible to determine net income?
- accountUsing the DuPont method, evaluate the effects of the following relationships for the Butters Corporation. A.Butters Corporation has a profit margin of 5.5 percent and its return on assets (investment) is 8.75 percent. What is its assets turnover? Round your answer to 2 decimal places. ______ times B.If the Butters Corporation has a debt-to-total-assets ratio of 65.00 percent, what would the firm’s return on equity be? Note: Input your answer as a percent rounded to 2 decimal places. C.What would happen to return on equity if the debt-to-total-assets ratio decreased to 60.00 percent? Input your answer as a percent rounded to 2 decimal places.The Mikado Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term debt plus equity) of .49 and a current ratio of 1.38. Current liabilities are $2,450, sales are $10,630, profit margin is 10 percent, and ROE is 15 percent. What is the amount of the firm’s net fixed assets?
- what is this's debt-equity ratio?Green Fire Company has a debt-equity ratio of 1.7. Return on assets is 14.25 percent, and total equity is $350,000. �What is its equity multiplier?The Lawrence Company has a ratio of long term debt to long term debt plus equity of .39 and a current ratio of 1.7. Current liabilities are 950, sales are 6370, profit margin is 9.8 percent, and ROE is 20 percent. What is the amount of the firms net fixed assets?
- A company has a debt-equity ratio of 1.25. The return on assets (ROA) is 8.2%, and total equity is $750,000. What is the net income?Zombie Corp. has a profit margin of 7.6%, total asset turnover of 3.9, and ROE of 32.55%. What is this firm's debt-equity ratio? HelpWhat is this firm debt equity ratio?