Assume the following ratios are constant. Total asset turnover Profit margin Equity multiplier Payout ratio What is the sustainable growth rate? ** 2.29 5.7% 1.76 36%

Q: return on equity ratio

A: The ratio refers to the relation between two financial values which shows the comparison between…

Q: Suppose we have the following information: Sales = $112,851 Assets = $131,468 Net profit margin…

A: Return on equity is the ratio of net income to the value of equity. Return on equity measures the…

Q: Which of the following strategy enables a manager to report a higher current ratio? Select one: a.…

A: The current ratio is the ratio of the current assets to the current liabilities of the entity. By…

Q: h. Calculate the total return % in each of the following instances: a. Do = $2.00, dividend growth =…

A: Answer Return ={ (Dividend + Capital gain ) / P0}×100

Q: enue = 9.5 M expense = 4M terest rate=1

A: DISCLAIMER  “Since you have asked multiple question, we will solve the first threr subparts as per…

Q: Need answer of this question

A: Answer:To find the profit margin, we need to use the relationship between the sustainable growth…

Q: A В 1 Equity A Weighted Weighted Squared State of Rate of Squared Deviation Probability Rate of…

A: expected return is the amount of profit an investor can expect receiving on an investement.

Q: Assume the following ratios are constant. Total asset turnover Profit margin Equity multiplier…

A: Total Asset Turnover = tat = 2.22Profit Margin = pm = 5.0%Equity Multiplier = em = 1.69Payout Ratio…

Q: 9. a. Div Yield % = 6%, Total Return % = 16%, Po = $10 b. Capital Gain% = 8%, Div Yield % = 5%, D1 =…

A: Given, Dividend Yield = 6% Total Return = 16% Po = $10 Capital Gain = 8% Dividend Yield =5% D1 = $3…

Q: When a lump sum investment shows growth, even if the interest rate stays low, it is known as.. 1-…

A: A lump sum investment is depositing the entire amount at one go.

Q: Given the following information, what is the desired profit margin? D/E = 2 current profit margin =…

A: Retention ratio, R = 0.6 Sustainable growth rate = 15% Calculation of ROE:

Q: Interpret your investment decisions made according to the rules mentioned

A: 0 1 2 3 4 5 1 COGS   -11000 -11000 -11000 -11000   2 OPENING STOCK 0 0 0 0…

Q: The Green Giant has a 5 percent profit margin and a 34 percent dividend payout ratio. The total…

A: The rate at which a business may continue growing without needing more funding from outside sources…

Q: Profit margin Capital intensity ratio Debt-equity ratio Net income Dividends 9.6% .57 .72…

A: The Sustainable Growth Rate (SGR), also known as the Internal Growth Rate, is a financial metric…

Q: The analysis of Returned on Invested Capital is as follows: 2015: 3.77% 2016: 1.46% 2017: 2.90%…

A: Return on invested capital is defined as a ratio which is computed to measure the efficiency of the…

Q: If vertical analysis, using total assets as the base, shows that total liabilities have increased…

A: Vertical analysis of the financial statement means the expression of each item of the financial…

Q: Based on the information above, the capital gains yield for the coming year is closest to A. 9.08%.…

A: The required return on a stock consists of the dividend yield and capital gains yield. The capital…

Q: ou expect to have the highest projected earnings gr ate? D A B OC Company A B C Estimated Estimated…

A: P/E ratio is the valuation of companies and that is based on the earning multiples and companies…

Q: A company has a Return on Equity of 0.23, a Profit Margin of 0.1 and Total Asset Turnover of 0.4.…

A: As per Dupont Analysis, Return on equity = Net Profit Margin * Asset Turnover ratio * Equity…

Q: During a period of permanent constant growth, the capital gains yield equals which one of the…

A: Dividend yield  on a stock - It can be defined as either the end of period dividend divided by the…

Q: Provide solution for this question

A: Step 1: Step 2: Step 3: Step 4:

Q: Which of the following scenarios can increase the return on assets? Other thing equal, decrease the…

A: Return on assets = Total ReturnAverage Total Assetsx100

Q: Calculate ROE for both companies and interpret your answer. Which company will you prefer for…

A: ROE or Return on equity is net profit after tax (PAT) divided by shareholder's equity. ROE shows how…

Q: Need help with this question

A: Understanding the Problem and Given Information We're tasked with finding the profit margin of a…

Q: What caused a decrease in the current ratio?

A: The current ratio is the ratio that is used to calculate the ability of the company to pay off its…

Q: Which of the following are determining EFN when% of sales approach is applied normally based on…

A: Sustainable growth rate is the rate of growth which the business should keep without increasing the…

Q: Find the unknowns: Consider the following data: Division K Income P140,000 ? Revenue ? P3,000,000…

A: The question is based on the concept of Accounting Ratios.

Q: Provide correct solution of this question

A: Step 1: Given data :Retention Ratio (b): 33% or 0.33Sustainable Growth Rate (g): 8.80% or…

Q: Assuming constant capital intensity ratio and full-capacity operation, the increase in total assets…

A: External Funds Required: The external funds required for any year are forecasted based on the…

Q: A firm wishes to maintain an sustainable growth rate of 9 percent and a dividend payout ratio of 64…

A: Debt-equity ratio evaluates how much debt and equity a company uses to finance its operations and…

Q: 6 Suppose Blooper's financials are as follows: See SPREADSHEET 9.1 Inputs Initial Investment Salvage…

A: Here, we can use the accounts receivable as a percentage of sales and the investment as a percentage…

Q: .Determine the covariance between assets R and S with the following data: State Prob…

A: Information State Prob Return J Return S Boom 0.1 16 22 Recession 0.2 -7 -4 Normal 0.4 12…

Q: Using the equation g = b x ROE will always result in the correct growth rate for future periods.…

A: The sustainable growth rate measures the greatest rate at which a business may expand its revenue,…

Q: Where do the 8% from the growth rate come from

A: The growth rate is   is used to assess the financial position and situation with respect to current…

Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.