Question: Accounting-Return on equity Firm A and B have debt-total asset ratios of 35% and 30% and ROA of 12% and 11%, respectively. Which firm has a greater ROE?
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- Which of the following statement is correct? Select one: O a. Return on assets is the ratio of net income after interest expense to total assets O b. All options are correct statement C. Average collection period is the average number of times it takes for the company's customers to pay their bills o d. Increase in the debt ratio indicate more reliance on debt as a source of financingWhen analyzing a companys debt to equity ratio, lithe ratio has a value that is greater than one, then the company has: a. equal amounts of debt and equity. c. less debt than equity. b. more debt than equity. d. none of these.Need help with this financial accounting question
- Which one of the proportions of debt in the following chart is the optimal level? Firm Value Vu+ TD A B OD OC A B C -Vu + TD - Financial Distress Costs D Proportion of DebtShort-term creditors would probably most interested in which ratio? a. Current ratio c. Debt-to-equity ratio b. Earnings per share d. Quick ratioReturn on equity (ROE) using the traditional DuPont formula equals to A. (net profit margin) (interest component) (solvency ratio) B. (net profit margin) (interest component) (liquidity ratio) C. (net profit margin) (total asset turnover) (quick ratio) D. (net profit margin) (total asset turnover) (solvency ratio)
- Comparing the extent of long-term debt to equity is an example of __________. Multiple Choice Pivottables Vertical analysis Horizontal analysis Ratio analysisWhich of the following ratios is(are) useful in assessing a company's ability to meet current maturing or short-term obligations? Acid-Test Ratio Debt to Total Assets Ratio a. Yes No b. Acid-Test Ratio Debt to Total Assets Ratio No No O c. Acid-Test Ratio Debt to Total Assets Ratio Y es No d. Acid-Test Ratio Debt to Total Assets Ratio Yes Yesall of above QUESTION 2 Which of the followings is commonly used for debt ratings? return on net capital total debt to total capital O standard deviation of returns interest coverage ratio All of them
- A company has: Return on Asset 0.08 Cost of the debt 0.04. What is the Cost of Equity if the debt-equity ratio is 0.58The Debt to Equity ratio calculation measures Group of answer choices c. How much debt the company has for every dollar of Equity b. The amount of Assets that are financed by debt None of the above a. The ability of the company to pay its’ current obligationsWhat is Return to Equity? Interest paid on debt Revenue minus Costs Only Retained Earnings All of the Above