Assume that the net profit margin = 9%, assets are 95 cents for every dollar of sales, and equity is 86 percent of assets. According to the DuPont system of financial ratio analysis, the ROE would beapproximatelyO A. 8%O B. 10%O c. 9%O D. 11%

ROE (DuPont Model) = Net Profit Margin x Asset Turnover x Equity Multiplier Where, Net Profit…

Answered: Assume that the net profit margin = 9%,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

AMT. Inc.'s net income for this quarter is $500,000. The publicized return on assets (ROA) is 34.5 % . Estimate the firm's total asset to the closet possible. a. $1,500,000 c. $2,450,000 b. $ 1,450,000 d. $2,005,500
consider the following data RF= 4.15% RPM = 5.35% and B= .85 based on the CAPM approach what is the cost of equity from retained earnings?
Q5. Here and Gone, Inc., has sales of $22,266,571, total assets of $14,998,717, and total debt of $3,554,344. If the profit margin is 12 percent, what is ROE? Enter the answer with 4 decimal places (e.g. 0.1234).
Operating profit margin = 8.65% Sales to assets ratio = 3.20 Assets = 630,000 Equity = 430,000 Interest payments = 43,000 Tax Rate = 40% What Is Return on Equity??????
Right Answer?
vvk.3
Kk.163.
4-3 DUPONT ANALYSIS Henderson's Hardware has an ROA of 11%, a 6% profit margin, and an ROE of 23%. What is its total assets turnover? What is its equity multiplier?
Please Solve
What is the return on assets of The Big Show Inc. that has sales of $428,300, total assets of $389,100, and a profit margin of 7.2 percent? Multiple Choice 7.01 percent 6.30 percent 6.54 percent 7.93 percent 6.83 percent
Company has return on assets 12.4% and debt-equity ratio is 0.25. What is ROE? Select one: a.35.43% b.9.18% c.9.3% d.15.5%
Firm K has a margin of 9%, turnover of 1.4, and sales of $1,610,000. Required: Calculate Firm K's net Income, average total assets, and return on Investment (ROI). Choose Factors: Choose Numerator: Net Income * Choose Factors: X Average Total Assets /Choose Denominator: = 1 Return on Investment Choose Numerator: /Choose Denominator: 1 1 Net Income Net Income Average Total Assets Average Total Assets 0 Return on Investment Return on Investment 0

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

Assume that the net profit margin = 9%, assets are 95 cents for every dollar of sales, and equity is 86 percent of assets. According to the DuPont system of financial ratio analysis, the ROE would be approximately O A. 8% O B. 10% Oc. 9% O D. 11%