Please need answer the financial accounting question Everest Industries has the following financial metrics:Operating Profit Margin = 6.5%Debt Burden = 0.85==Equity Financing = 70% of total assetsWhat asset turnover ratio is necessary to achieve a Return onEquity (ROE) of 20%?

Step 1: Define Return on Equity (ROE)Return on Equity (ROE) is a financial ratio that measures the…

Answered: Everest Industries has the following…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

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ISBN:9781337514835

Author:MOYER

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Du Pont Analysis. Keller Cosmetics maintains an operating profit margin of 5% and asset turnover ratio of 3. a. what is ROA? b. If its debt-equity ratio is 1, its interest payments and taxes are each 8000, and EBIT is 20,000 what is its ROE? * I know ROA is Asset Turnover x OPM which gives me .15. How do I analyze this? Is it for every dollar spent on assets you get a return of 15%. Also How do I solve for b. Please give me step by step instructions. For the ROE, I was able to solve for NI given the EBIT, Interest Pay, and Tax. This is 4000. However I don't know how to solve for equity to find ROA. Can you give me step by step instructions/full explanations on how to calculate equity?
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Everest Industries has the following financial metrics: Operating Profit Margin = 6.5% Debt Burden = 0.85 == Equity Financing = 70% of total assets What asset turnover ratio is necessary to achieve a Return on Equity (ROE) of 20%?