Answered: Baugh & Essary has net income of…

Baugh & Essary has net income of $149,200, sales of $936,800, a capital intensity ratio of 0.74, and an equity multiplier of 1.5. What is the return on equity?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter11: Determining The Cost Of Capital

Section: Chapter Questions

Problem 1Q: Define each of the following terms: Weighted average cost of capital, WACC; after-tax cost of debt,...

See similar textbooks

Related questions

Q: Explain

A: Explanation of Realization Principle: The realization principle is a fundamental accounting concept…

Q: A retailer recorded the following in June: solve these financial accounting question not use ai

A: Step 1: Define SaleSale is the selling the goods to the customers. The sale can be a cash sale or a…

Q: Please given answer Accounting question

A: Step 1: Define How to Compute Asset Return?The return on assets is a profitability ratio that…

Q: Financial Accounting

A: Step 1: Define Accounting EquationThe accounting equation is made using the assets, liabilities, and…

Q: I need answer of this question solution general accounting

A: Step 1: Identify the formula for net incomeStep 2: Substitute the given valuesStep 3: Calculate the…

Q: I want to correct answer accounting

A: Step 1: Definition of Activity-Based CostingActivity-Based Costing allocates overhead costs to…

Q: Please see the Question

A: Explanation of Integrated Reporting:Integrated reporting (IR) is a modern approach to corporate…

Q: Provide this question solution general accounting

A: Step 1: Determine the months for the interest to grow for each cash flow Since, the cash flows…

Q: ceKreme Inc. makes ice cream machines for sale to ice cream parlours. The following events occurred…

A: Approach to explanation:Step 1:Any business's accounting books contain journal entries, which are…

Q: PLEASE HELP ME WITH THIS ACCOUNTING PROBLEM!

A: A. Impairment at December 31, 2025Step 1: Calculate the carrying amount of the equipment.Annual…

Q: I want to correct answer general accounting

A: Step 1: Definition of Accounts ReceivableAccounts Receivables are current assets of the business.…

Q: Question: MCQ Accounting When should the periodicity assumption be modified? a) Never under any…

A: Explanation of Periodicity Assumption: The periodicity assumption is a fundamental accounting…

Q: Solution step by step

A: Explanation of Hourly Cost Assignment:Hourly cost assignment involves calculating the cost of a…

Q: I need do fast typing clear urjent no chatgpt used i will give 5 upvotes pls full explaination

A: I hope this is helpful.

Q: Hello tutor please provide this question solution general accounting

A: Step 1: Define Income Summary AccountAn income summary account is a temporary account that is open…

Q: Need help with this question solution general accounting

A: Step 1: Define Costs of a FirmThe overall costs of a firm can be broadly categorized into…

Q: Financial Accounting

A: Step 1: Define Debt-Equity RatioDebt-Equity Ratio is a type of financial ratio that depicts the…

Q: Want answer of this accounting Question

A: Key Definitions Related to the Question:Going Concern Assumption: The principle assuming that a…

Q: Please provide this question solution general accounting

A: Step 1: Define Return on AssetsReturn on Assets is an example of financial ratio which measures the…

Q: The office supplies expense for the period is:

A: Step 1: Calculate the total supplies available:Total supplies available = Beginning supplies +…

Q: What was the cost of goods manufactured on these general accounting question?

A: Step 1: Define Process-Costing SystemThe process-costing system is used to evaluate the costs…

Q: What is the rental revenue for march?

A: The total value of rental revenue for the month of March would be determined as a sum of rent…

Q: If you give me wrong answer I will give you unhelpful rate on these general accounting question

A: Step 1: Define Factory overheadFactory overhead refers to the cost that the firm incurs during the…

Q: Please give me answer general accounting

A: Step 1: Define Conversion CostsConversion costs are total cost exclusive of raw material costs. That…

Q: Calculate the unearned revenue

A: Explanation of Pre-sells: Pre-selling refers to the practice of selling a product or service before…

Q: Want answer

A: Explanation of Net Cost of Purchases: Net cost of purchases represents the final total cost of goods…

Q: Exercise 16-52 (Algo) (Appendix used in requirement [c]) Comprehensive Cost Variance Analysis (LO…

A: Step 1: Identify the VariancesReview the Variance Analysis: Examine the cost variance analysis for…

Q: Make a balance sheet with this.

A: AssetsAssets are the resources that the business owns and uses to operate. These include cash,…

Q: Financial accounting: find the rental revenue for march?

A: Explanation of Rental Revenue:Rental revenue refers to the total income earned by a business from…

Q: Get correct answer general accounting

A: Step 1: a) Gross Profit Gross profit can be calculated by subtracting the cost of merchandise sold…

Q: Accounting

A: To calculate the Yield to Maturity (YTM) of a zero-coupon bond, we use the following…

Q: Vulcan Flyovers offers scenic overflights of Mount Saint Helens, the volcano in Washington State…

A: To create the Flexible Budget Performance Report for Vulcan Flyovers for July, we need to compare…

Q: Hello tutor provide answer this accounting question not use ai

A: Step 1:Standard rate is the rate which a company assumed to be incur on production.Standard cost…

Q: 5-8 Question

A: Step 1: Identify the total annual rent and payment date:• Total annual rent = $60,000• Payment date…

Q: Hii tutor please help

A: Explanation of Capitalized Cost: Capitalized cost represents all expenses required to get an asset…

Q: Provide this question solution general accounting

A: Year One:Service Cost = $200,000Interest Rate = 10%PBO_End = PBO_Begin + Service Cost + (PBO_Begin ×…

Q: Answer

A: Explanation of Relative Reliability Principle: The relative reliability principle in accounting…

Q: I need answer Accounting question

A: Step 1: Define DividendsDividends are not recorded on the balance sheet or income statement and only…

Q: Given answer Accounting question

A: Step 1: Define Stockholder's EquityStockholder's Equity can be defined as the representation of the…

Q: Ans

A: Explanation of Physical Inventory Count: A physical inventory count is the actual counting of…

Q: Calculate the OPM

A: Explanation of Sales: Sales represent the total revenue a company generates from selling goods or…

Q: I need answer Accounting question

A: Fixed overhead per unit = Total fixed overhead / Number of units producedFixed overhead per unit =…

Q: Provide answer the general accounting question not use Ai

A: Step 1: Define Traditional CostingIn cost accounting, traditional costing is a cost allocation…

Q: I need questions answers accounting

A: Step 1: Define Variance AnalysisThe variance analysis is usually used for resources such as direct…

Q: I want to correct answer general accounting

A: Explanation: The formula to calculate Return on Assets (ROA) is = (Net income/Average Total assets)…

Q: Ballona bay surfboards manufactures

A: let's break it into the requested steps for clarity: 1. Compute the direct manufacturing labor…

Q: Given answer financial

A: Step 1: Define Gross SalesIn accounting, the gross sale is an important account. It is a measure of…

Q: Need help with this question solution general accounting

A: Step 1: Define Total bank depositsTotal bank deposits are the total sum of money which are submitted…

Q: Question: Financial Accounting Evergreen Industries reported sales $600,000, cost of goods sold…

A: Explanation of Sales: Sales represents the total revenue generated from the primary business…

Q: ! Required information Problem 13-58 (LO 13-2) (Static) [The following information applies to the…

A: Scenario B (Annual Salary: $240,000)b-1. SV's Contribution to Matthew's Money Purchase Plan1.Find…

Question

100%

What is the return on equity on these financial accounting question?

Baugh & Essary has net income of $149,200, sales
of $936,800, a capital intensity ratio of 0.74, and
an equity multiplier of 1.5. What is the return on
equity?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

O'Brien Inc. has the following data: rRF = 5.00%; RPM = 9.00%; and b = 0.65. What is the firm's cost of equity from retained earnings based on the CAPM?
Adams Inc. has the following data: rRF = 5.00%; RPM = 6.00%; and b = 1.05. What is the firm's cost of common from reinvested earnings based on the CAPM? a. 12.72% O b. 11.99% c. 12.35% d. 11.64% e. 11.30%
You obtained the following data for Game Corporation: D1= $1.25; P0= $27.50; g = 5.00% (constant); and flotation costs = 6.00%. What is the cost of common equity raised by selling new common stock? What is the cost of common from reinvested earnings? Show work in excel
you have been provided with the following data D1=$1.27 PO=60 and G=8 constant. What is the cost of equity from retained earnings based on the DCF approach?
Consider the following for a firm. Its stock price (P0) is at $50, its payout ratio (POR) is 0.4, its EPS1 is $2.00, and investor required return is 10%.. What is the percent of capital gains?DONOT SOLVE ON EXCEL USE PROPER FORMATE
O'Brien Inc. has the following data: r RF=5.00%; RP M=6.00%; and b=1.10. What is the firm's cost of equity from retained earnings based on the CAPM? A. 11.83% B. 13.22% C. 11.25% D. 8.93% E. 11.60%
If Average assets and capital are 900,000 and 540,000, respectively, with a net income of 47,520, what is the return on equity?
4.Easy Corp.’s return on assets measure is 0.20 (20%. Its return on equity measure is 0.25 (25%). What is the firm’s equity multiplier? (Please show work and explain)
If Roten Rooters, Inc., has an equity multiplier of 1.27, total asset turnover of 1.20, and a profit margin of 3.5 percent, what is its ROE?
Define each of the following terms: Weighted average cost of capital, WACC; after-tax cost of debt, rd(1 – T); after-tax cost of short-term debt, rstd(1 – T) Cost of preferred stock, rps; cost of common equity (or cost of common stock), rs Target capital structure Flotation cost, F; cost of new external common equity, re
i need the answer quickly
Below, inputs have been arrived for the XYZ company. Using CAPM calculate its cost of equity. (Observe 2 decimal places)