Company ABC had a profit margin of 6.25%, total asset turnover of 1.5, and an equity multiplier of 1.8. a. What was the firm's ROE? b. What would happen if the equity multiplier went up to 2.5?
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- Assume that you are a consultant to Morton Inc., and you have been provided with the following data: DO = $1.4; PO = $36; and g = 4.8% (constant). What is the cost of equity from retained earnings based on the DCF approach? O 9.68% O 9.08% O 9.48% O 9.28% O 8.88% 19you 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?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)
- What is the profit margin ?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 a company has an equity multiplier of 2.00, total asset turnover of 1.97, and a profit margin of 4.4 percent. What is its ROE? Leave as a percent and round to two places past the decimal point. Your Answer: Answer