Last year Gray Corp. had net sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm's total-debt-to-total-capital ratio was 45.0%. The firm uses only debt and common equity as financing. Based on the DuPont equation, what was the ROE?
Q: Portneuf Industries has a debt-equity ratio of 1.5. Its WACC is 8.4%, and its cost of debt is 5.9%.…
A: We are given the following data :Debt-equity ratio : 1.5WACC : 8.4%Cost of debt : 5.9%Tax rate :…
Q: Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets…
A: (1) Net profit margin = (Net income / Sales ) x 100=>Net profit margin…
Q: Williamson, Inc., has a debt-equity ratio of 2.45. The company's weighted average cost of capital is…
A: Here,Debt Equity ratio is 2.45Cost of Debt is 6%Tax Rate is 25%WACC is 10%
Q: Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets…
A: The DuPont analysis refers to the breakdown of the return on equity into its factors to measure the…
Q: (DuPont analysis) Dearborn Supplies has total sales of $196 million, assets of $100 million, a…
A: Total sales= $196,000,000Total assets= $100,000,000Return on Equity= 28%Net Profit margin=…
Q: Last year Vaughn Corp. had sales of $310,000 and a net income of $17,574, and its year-end assets…
A: Du Pont equation ROE=NET PROFIT MARGIN X ASSETS TURNOVER RATIO X EQUITY MULTIPLIER
Q: A firm has a long-term debt–equity ratio of 0.50. Shareholders’ equity is $2.0 million. Current…
A: Debt equity ratio- 0.50 Equity - $2.0 million CA- $ 320,000 Total assets - $3,200,000 Current ratio…
Q: Gates Appliances has a return-on-assets (investment) ratio of 20 percent. a. If the…
A: Return on equity(or ROE) = Return on assets×Equity multiplier Equity multiplier is calculated as…
Q: Draiman Company has a debt-equity ratio of 0.75. Return on assets is 10.4 percent, and total equity…
A: Given the following information: Debt-equity ratio: 0.75 Return on assets: 10.4% Total equity:…
Q: Y3K, Incorporated, has sales of $7,475, total assets of $3,525, and a debt - equity ratio of .34.…
A: We need to use DuPont's formula to calculate net profit marginROE = Net profit margin *Total assets…
Q: Blitz Industries has a debt-equity ratio of 1.7. Its WACC is 8.1 percent, and its cost of debt is…
A: Data given : Debt-equity ratio = 1.7:1 WACC = 8.1% Cost of debt = 5.7% Corporate tax rate = 23%
Q: The Ashwood Company has a long-term debt ratio of .45 and a current ratio of 1.25. Current…
A: Long term debt ratio = long term debt/(long term debt+equity) = 0.45 Current ratio = current…
Q: The Rossdale Company has a ratio of long-term debt to long-term debt plus equity of .34 and a…
A: The DuPont equation is a financial formula that breaks down a company's return on equity (ROE) into…
Q: Using the Du Pont method, evaluate the effects of the following relationships for the Butters…
A: a). Return on assets = Profit margin×Asset turnover Therefore, Asset turnover = Return on…
Q: DuPont analysis) Dearborn Supplies has total sales of $199 million, assets of $98 million, a…
A: ROE is return available to common stockholders of the entity. It is return left after payment of…
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: Last year Vaughn Corp. had sales of $315,000 and a net income of $17,832, and its year-end assets…
A: Du-Pont: A Du-pont analysis is the equation which calculates the return on equity by multiplying net…
Q: Last year Vaughn Corp. had sales of $315,000 and a net income of $17,832, and its year-end assets…
A: ROE (Return on Equity) is calculated to show the financial performance of the company which is…
Q: Using the DuPont method, evaluate the effects of the following relationships for the Butters…
A: a). Therefore,
Q: Last year, Atlantic Richfield had sales of $325,000 and a net income of $28,700. The firm finances…
A: Return on equity (ROE) is the relationship between a company's profit and the investor's return.
Q: A firm has a debt-to-equity ratio of 1. Its levered cost of equity (Rs) is 10.4 %, and its pretax…
A: Cost of unlevered equity can be calculate by using this equation under MM approch1963 Levered cost…
Q: Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year- end…
A: Total assets turnover ratio = Sales / Total AssetsTotal assets turnover ratio = $325,000 /…
Q: perating capital = $2,300. What was its return on invested capital (ROIC)? Select the correct…
A: Answer : Return on invested capital (ROIC) = NOPAT / Total operating capital Return on invested…
Q: long-term debt ratio (i.e., the ratio of long-term debt to long-term debt plus equity) of .49 and a…
A: Net fixed assets:Tangible, long-term assets that a business owns and utilizes to produce goods or…
Q: Last year Justine Corp. had sales of P315,000 and a net income of P17,382 and its year-end assets…
A: Du Pont analysis is a technique that is used to decompose the different drivers of the return of…
Q: Blitz Industries has a debt-equity ratio of 1.2. Its WACC is 7.4 percent, and its cost of debt is…
A: a.Calculation of Cost of Equity Capital:The cost of equity capital is 11.51%.
Q: Using the DuPont method, evaluate the effects of the following relationships for the Butters…
A: DuPont analysis is a method of breaking down a company's return on equity (ROE) into three…
Q: Dickson, Incorporated, has a debt-equity ratio of 2.85. The firm's weighted average cost of capital…
A: Here,Debt Equity ratio is 2.85Cost of Debt is 6%Tax Rate is 24%WACC is 10%
Q: (DuPont analysis) Dearborn Supplies has total sales of $197 million, assets of $109 million, a…
A: Total Sales = s = $197 millionAssets = a = $109 millionReturn on Equity = roe = 34%Net Profit Margin…
Q: Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets…
A: Return on equity (ROE) =(Net income / revenue) * (revenue / Total assets) * (assets / common equity)…
Q: a. Last year Harrington Inc. had sales of $654,000 and a net income of $89,000, and its year-end…
A: Total Capital = Total Assets =2,70,000Debt to total capital= 45%Debt =…
Q: The Lawrence Company has a ratio of long term debt to long term debt plus equity of .39 and a…
A: 1.Current ratio is calculated as follows:-Current ratio = 2.profit margin is calculated as…
Q: Dickson, Inc., has a debt-equity ratio of 2.3. The firm's weighted average cost of capital is 11…
A: To calculate the cost of equity (Ke), we can use the formula:Ke = Kd*(1 - T) * (D/E) + Ks *…
Q: Draiman Company has a debt-equity ratio of 0.75. Return on assets is 10.4 percent, and total equity…
A: The equity multiplier is an indicator of risk that computes the portion of total assets that is…
Last year Gray Corp. had net sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm's total-debt-to-total-capital ratio was 45.0%. The firm uses only debt and common equity as financing. Based on the DuPont equation, what was the
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- Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm's total-debt-to-total-capital ratio was 17.5%. The firm finances using only debt and common equity, and its total assets equal total invested capital. Based on the DuPont equation, what was the ROE? Do not round your intermediate calculations. O a. 9.49% O b. 11.52% O c. 9.21% O d. 7.74% O e. 9.86%Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year- end assets were $250,000. The firm's total-debt-to-total-capital ratio was 47.5%. The firm finances using only debt and common equity, and its total assets equal total invested capital. Based on the DuPont equation, what was the ROE? Do not round your intermediate calculations. O 14.48% 13.03% O 14.91% O 17.08% 11.29%a. Last year Harrington Inc. had sales of $654,000 and a net income of $89,000, and its year-end assets were $270,000. The firm's total-debt-to-total-capital ratio was 45.0%. The firm finances using only debt and common equity and its total assets equal total invested capital. Based on the DuPont equation, what was the ROE?
- Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $295000. The firm's total-debt-to-total- capital ratio was 72.5%. The firm finances using only debt and common equity, and its total assets equal total invested capital. Based on the DuPont equation, what was the ROE? Do not round your intermediate calculations. a. 5.85% b. 21.26% c. 23.42% d. 85.17% e. 6.44%Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $240,000. The firm's total-debt-to-total-capital ratio was 32.5%. The firm finances using only debt and common equity, and its total assets equal total invested capital. Based on the DuPont equation, what was the ROE? Do not round your intermediate calculations. Ⓒa. 11.73% b. 17.38% O c. 5.85% d. 8.66% e. 7.92%Portneuf Industries has a debt-equity ratio of 1.5. Its WACC is 8.4%, and its cost of debt is 5.9%. The corporate tax rate is 35%. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) a. What is the company's cost of equity capital? Cost of equity capital b. What is the company's unlevered cost of equity capital? Unlevered cost of equity capital 2.65 % c-1. What would the cost of equity be if the debt-equity ratio were 2? Cost of equity 2.65 % Cost of equity 0.73 % c-2. What would the cost of equity be if the debt-equity ratio were 1.0? Cost of equity c-3. What would the cost of equity be if the debt-equity ratio were zero? 11.5% %
- Last year, Atlantic Richfield had sales of $325,000 and a net income of $28,700. The firm finances using only debt and common equity, and total assets equal total invested capital. Year-end assets were $250,000, and the firm's debt ratio (total-debt-to-total-capital ratio) was 15%. What was their ROE? Your answer should be between 7.12 and 15.40, rounded to 2 decimal places, with no special characters.Last year Justine Corp. had sales of P315,000 and a net income of P17,382 and its year-end assets were P210,000. Justine's total-debt-to-total-assets ratio was 42.5%. Based on the Du Pont equation, what was Justine's return on equity (ROE)?Blitz Industries has a debt-equity ratio of 1.2. Its WACC is 7.4 percent, and its cost of debt is 5.1 percent. The corporate tax rate is 22 percent. a. What is the company’s cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the company’s unlevered cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c-1. What would the cost of equity be if the debt-equity ratio were 2? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c-2. What would the cost of equity be if the debt-equity ratio were 1.0? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c-3. What would the cost of equity be if the debt-equity ratio were zero? (Do not round intermediate…
- Blitz Industries has a debt-equity ratio of 1.7. Its WACC is 8.1 percent, and its cost of debt is 5.7 percent. The corporate tax rate is 23 percent. a. What is the company’s cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the company’s unlevered cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c-1. What would the cost of equity be if the debt-equity ratio were 2? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c-2. What would the cost of equity be if the debt-equity ratio were 1.0? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c-3. What would the cost of equity be if the debt-equity ratio were zero? (Do not round intermediate…A firm has a long-term debt–equity ratio of 0.50. Shareholders’ equity is $2.0 million. Current assets are $320,000, and total assets are $3.2 million. If the current ratio is 1.6, what is the ratio of debt to total long-term capital?Dickson, Inc., has a debt-equity ratio of 2.3. The firm's weighted average cost of capital is 11 percent and its pretax cost of debt is 8 percent. The tax rate is 23 percent. a. What is the company's cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the company's unlevered cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What would the company's weighted average cost of capital be if the company's debt- equity ratio were .80 and 1.30? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a. Cost of equity b. Unlevered cost of equity C. WACC if debt-equity ratio = 0.80 WACC if debt-equity ratio = 1.30 % % % % do do do do
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