General Accounting The Horizon Builders Inc. has total assetsof $40 million and total liabilities of $15million. The company has a profit marginof 10.5% on sales of $60 million. What isthe company's return on equity?

Step 1: Define Return on Equity (ROE)Return on Equity (ROE) is a measure of financial performance…

Answered: The Horizon Builders Inc. has total…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 6P

See similar textbooks

Similar questions

What is the company's return on equity?
What is its equity multiplier on these accounting question?
A firm has sales of $800, total assets of $500, and a debt/equity ratio of 1.5. If its return on equity is 18%, what is its net income?
Using the Du Pont method, evaluate the effects of the following relationships for the Butters Corporation. a. Butters Corporation has a profit margin of 5 percent and its return on assets (investment) is 22.5 percent. What is its assets turnover? (Round your answer to 2 decimal places.) b. If the Butters Corporation has a debt-to-total-assets ratio of 55.00 percent, what would the firm's return on equity be? (Input your answer as a percent rounded to 2 decimal places.) c. What would happen to return on equity if the debt-to-total-assets ratio decreased to 50.00 percent? (Input your answer as a percent rounded to 2 decimal places.)
King, Inc. has sales of $900,200, total assets of $1,200,100, and a profit margin of 10.68 percent. The firm has a total debt ratio of 80 percent. What is the return on equity?
What is the return on equity ??
What is this accounting question roe?
Y3K, Inc., has sales of $4,600, total assets of $3,270, and a debt-equity ratio of 1.40. If its return on equity is 19 percent, what its net income?
jPhone, Inc., has an equity multiplier of 1.44, total asset turnover of 1.73, and a profit margin of 11 percent. What is the company's ROE?
I want to answer
Using the DuPont method, evaluate the effects of the following relationships for the Butters Corporation. A.Butters Corporation has a profit margin of 5.5 percent and its return on assets (investment) is 8.75 percent. What is its assets turnover? Round your answer to 2 decimal places. ______ times B.If the Butters Corporation has a debt-to-total-assets ratio of 65.00 percent, what would the firm’s return on equity be? Note: Input your answer as a percent rounded to 2 decimal places. C.What would happen to return on equity if the debt-to-total-assets ratio decreased to 60.00 percent? Input your answer as a percent rounded to 2 decimal places.
Calculate vintages return on equity and units?

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS

The Horizon Builders Inc. has total assets of $40 million and total liabilities of $15 million. The company has a profit margin of 10.5% on sales of $60 million. What is the company's return on equity?