Ladders, Inc. has a net profit margin of 5.2% on sales of $50.6 million. It has book value of equity of $38.1 million and total book liabilities of $30.9 million. What is Ladders' ROE? ROA? Note: Assume the value of Interest Expense is equal to zero. What is Ladders' ROE? Ladders' ROE is %. (Round to two decimal places.) What is Ladders' ROA? Ladders' ROA is %. (Round to two decimal places.)

Q: If Rogers, Incorporated, has an equity multiplier of 1.51, total asset turnover of 1.30, and a…

A: Given: Equity multiplier = 1.51 Total asset turnover ratio = 1.30 Profit margin = 6.1%

Q: Keller Cosmetics maintains an operating profit margin of 5% and asset turnover ratio of 6. a. What…

A: We need to use below equations to solve above problems.ROA = Operating profit margin* Assets…

Q: In the past year, TVG had revenues of $3.03 million, cost of goods sold of $2.53 million, and…

A: TIME INTEREST EARNED RATIO Times Interest Earned Ratio is the Ratio Between Earning Before…

Q: What is its P/E ratio?

A: SOLUTION:-    P/E Ratio = Market Value per share/ EPS (Earnings Per Share) Given EPS = $2.85…

Q: Here and Gone, Inc., has sales of $18,572,496, total assets of $12,105,055, and total debt of…

A: Return on assets (ROA) is a financial ratio that measures a company's profitability relative to its…

Q: The interest coverage ratio is times.

A: Interest coverage ratio is a financial metric that helps in determining the ability of a business…

Q: Spelman Corporation has Sales of $36,800, Depreciation Expense of $3,000, Interest Expense of…

A: The objective of the question is to calculate the profit margin of Spelman Corporation. The profit…

Q: What is the amount of the firm’s net fixed assets?

A: Fixed Assets: These are assets having a life of more than one year. They are purchased for goods and…

Q: jPhone, Inc., has an equity multiplier of 1.42, total asset turnover of 1.71, and a profit margin of…

A: In this question, we are required to determine the Return on Equity (ROE).

Q: Y3K, Inc., has sales of $6,209, total assets of $2,825, and a debt-equity ratio of 1.10. If its…

A: Net income is the amount of profit left by the company after paying all the operating and…

Q: Firm B has accounts receivable of $5,000,000 and annual sales of $9,000,000. What is the firm's days…

A: Accounts Receivable = $5,000,000Number of Days in Period = 365Annual sales = $9,000,000

Q: Borland, Inc., has a profit margin of 6.5 percent on sales of $22,600,000. Assume the firm has debt…

A: Return on assets (ROA) refers to the evaluation of the profitability of a company’s assets.

Q: Use the following information to complete the balance sheet below. Sales are $8.4 million, capital…

A: The balance sheet represents the position held by the company in the industry which helps the users…

Q: From the balance sheet prepare a proforma income statement where revenues can increase by 2% and the…

A: A projected income statement is a statement in which the future income statements are projected by…

Q: Martinez, Inc., has a total debt ratio of .65, total debt of $345,000, and net income of $31,280…

A: Calculation of Return on Equity:The return on equity is 16.84%.Excel Spreadsheet:

Q: Gardial & Son has an ROA of 9%, a 4% profit margin, and a return on equity equal to 20%. What is the…

A: Total Asset Turnover - It is ratio that measures how efficiently company uses its assets to generate…

Q: Rick's Travel Service has asked you to help piece you the following information: sales are $7.4…

A: Sales = $7,400,000Total debt = $2,000,000Debt ratio = 35%ROE = 17.1%

Q: High mountain foods has an equity multiplier of 1.72 a total asset turnover of 1.16 and a profit…

A: The return on assets is calculated as the product of profit margin and asset turnover

Q: Elizabeth Tailors Inc. has assets of $8,540,000 and turns over its assets 1.8 times per year. Return…

A: A sale is an agreement between a buyer and a seller in which a seller exchanges money in exchange…

Q: jPhone, Inc., has an equity multiplier of 1.35, total asset turnover of 1.63, and a profit margin of…

A: Equity Multiplier = 1.35 Total Asset Turnover = 1.63 Profit Margin = 7%

Q: ↑ Chutes & Co. has interest expense of $1.92 million and an operating margin of 10.9% on total sales…

A: The interest coverage ratio offers important clues about a company's financial health and debt…

Q: Calculate the current ratio. fill in the blank 1 2.  Calculate the quick ratio (acid-test ratio).…

A: The calculation of Current Ratio and Quick Ratio ( Acid - test Ratio) is shown hereunder : Given,…

Q: If Roten Rooters, Inc., has an equity multiplier of 1.28, total asset turnover of 1.85, current…

A: Return on EquityThe Return on Equity (ROE) is a metric used to assess how profitable a company is in…

Q: Roten Rooters, Inc., has an equity multiplier of 1.05, total asset turnover of 2.31, and a profit…

A: Return on equity (ROE) refers to the return that is generated from the equity capital of the…

Q: The Lawrence Company has a ratio of long-term debt to long-term debt plus equity of .34 and a…

A: Profit Margin = Net Profit/Sales So Net Profit = Sales * Profit Margin    ROE = Net Profit/Equity So…

Q: The Maurer Company has a long-term debt ratio of .27 and a current ratio of 1.30. Current…

A: Net fixed assets are recorded in the books at purchase price after deducting accumulated…

Q: A company hired you as a consultant to help estimate its cost of capital. You have obtained the…

A: The cost of equity can be calculated from the dividend discount model

Q: Hannah Company has current assets equal to $3,800,000. Of these, $1,200,000 is cash, $1,800,000 is…

A: Current ratio = Current assets / Current liabilities

Q: A company has an EPS of $1.65, a book value per share of $16.17, and a market/book ratio of 1.4x.…

A: The objective of the question is to calculate the Price to Earnings (P/E) ratio of a company given…

Q: company has current assets of $87,000 (of which $43,000 is inventory and prepaid items) and current…

A: Answer 1) Calculation of Current ratio Current Ratio = Current Assets/ Current Liabilities…

Q: Borland, Inc., has a profit margin of 6.5 percent on sales of $22,600,000. Assume the firm has debt…

A: Formula: ROA = ( Net profit / Total Assets ) x 100

Q: Easter Egg and Poultry Company has $1,700,000 in assets and $681,000 of debt. It reports net income…

A: In ratios, two figures from two different balance sheet dates are compared. It is a quantitative…

Q: If Rogers, Incorporated, has an equity multiplier of 1.57, total asset turnover of 1.70, and a…

A: The ROE is a measure of how well a company performs with the money that its shareholders have…

Q: If Roten Rooters, Inc., has an equity multiplier of 2.46, total asset turnover of 1.63, current…

A: ROE, or Return on Equity, is a financial measure that evaluates a company's profitability by…

Q: hite Waters, Inc., has sales of $28 million, total assets of $36 million, and total debt of $11…

A: ROA is return on assets and is measure of profitability and can be calculated by net income divided…

Q: synoec company has a debt - equity ratio of .85. return on assets is 10.4 percent, and total equity…

A: We use financial ratios to determine and analyse the financial position and financial health of a…

Q: Chutes & Co. has interest expense of $1.69 million and an operating margin of 10.7% on total sales…

A: Sales = $29.8 million Interest expenses = $1.69 million Operating margin = 10.7% EBIT =…

Q: Here and Gone, Inc., has sales of $17,680,797, total assets of $8,472,354, and total debt of…

A: The ROE is a measure of the financial performance of the entity. Investor generally uses this to…

Q: Rogers, Incorporated, has an equity multiplier of 1.44, total asset turnover of 1.73, and a profit…

A: The objective of this question is to calculate the Return on Equity (ROE) for Rogers, Incorporated.…

Q: Byron Books Inc. recently reported $18 million of net income. Its EBIT was $37.2 million, and its…

A: Interest expense is the cost incurred for borrowing the fund. Interest is calculated on the…

Dividend Valuation

Dividend refers to a reward or cash that a company gives to its shareholders out of the profits. Dividends can be issued in various forms such as cash payment, stocks, or in any other form as per the company norms. It is usually a part of the profit that the company shares with its shareholders.

Dividend Discount Model

Dividend payments are generally paid to investors or shareholders of a company when the company earns profit for the year, thus representing growth. The dividend discount model is an important method used to forecast the price of a company’s stock. It is based on the computation methodology that the present value of all its future dividends is equivalent to the value of the company.  

Capital Gains Yield

It may be referred to as the earnings generated on an investment over a particular period of time. It is generally expressed as a percentage and includes some dividends or interest earned by holding a particular security. Cases, where it is higher normally, indicate the higher income and lower risk. It is mostly computed on an annual basis and is different from the total return on investment. In case it becomes too high, indicates that either the stock prices are going down or the company is paying higher dividends.

Stock Valuation

In simple words, stock valuation is a tool to calculate the current price, or value, of a company. It is used to not only calculate the value of the company but help an investor decide if they want to buy, sell or hold a company's stocks.