PT. Alpha Textilindo (PT. A) and PT. Beta Indogarmen (PT. B) are two companies engaged in the garment sector. At the end of 2020, the return on equity (ROE) of PT. A is equal to (8% + X%) while the ROE of PT. B is (12% + Y%). The net profit margins of PT. A and PT. B are 8% and 10%, respectively. If both companies have the same asset turnover ratio of 0.6, calculate the debt- ratio for both companies!
PT. Alpha Textilindo (PT. A) and PT. Beta Indogarmen (PT. B) are two companies engaged in the garment sector. At the end of 2020, the return on equity (ROE) of PT. A is equal to (8% + X%) while the ROE of PT. B is (12% + Y%). The net profit margins of PT. A and PT. B are 8% and 10%, respectively. If both companies have the same asset turnover ratio of 0.6, calculate the debt- ratio for both companies!
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
X=9
y=4
(this is not graded question)
Transcribed Image Text:PT. Alpha Textilindo (PT. A) and PT. Beta Indogarmen (PT. B) are two companies engaged in the
garment sector. At the end of 2020, the return on equity (ROE) of PT. A is equal to (8% + X%)
while the ROE of PT. B is (12% + Y%). The net profit margins of PT. A and PT. B are 8% and
10%, respectively. If both companies have the same asset turnover ratio of 0.6, calculate the debt-
ratio for both companies!
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