Use the following information for La Vie en Rose, Inc.: EBIT / revenue = 10% Tax retention rate = 60% Revenue / assets = 1.7 times Current ratio = 2 times EBT / EBIT = 0.8 times Assets / equity = 1.8 times La Vie en Rose, Inc.'s return on equity is closest to: 10.5%. 14.6%. 18.5%.

Q: Assume that you are a consultant to Morton Inc., and you have been provided with the following data:…

A: Current Dividend = d0 = $1.4Current Price of Stock = p0 = $36Growth Rate = g = 4.8%

Q: The Dog House has net income of $3,450 and total equity of $8,600. The debt-equity ratio is .60 and…

A: Return on asset = Return on equity/(1+Debt equity ratio)  Return on equity = Net Income/Total equity…

Q: Jiminy Cricket Removal has a profit margin of 8 percent, total asset turnover of 1.0, and ROE of…

A: We know that the return on equity (ROE) is determined by multiplying the profit margin, total asset…

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: A firm's equity beta is 1.1. Its tax rate is 30 per cent and debt-equity ratio is 4:5. What is the…

A: We need to use the asset beta formula given below Asset beta =Equity Beta1+(1-tax rate)*Debtequity

Q: Question: Lee Sun's has sales of $3,500, total assets of $3,200, and a profit margin of 5 percent.…

A: Step 1: Given, Lee Sun's has sales = $3,500 at a profit margin = 5%, Total Assets = $3,200,Total…

Q: Y3K Inc. has sales of $5783, total assets of $2604, and a debt-equity ratio of .75. If its Return on…

A: Profit margin = Net Income = Return on equity * Total equity

Q: Adams Inc. has the following data: rRF = 4.00%; RPM = 7.00%; and b = 1.20. What is the firm's cost…

A: Cost of common equity     Using CAPM       Formula       Risk free rate + ( Market rate…

Q: Find the WACC given the following information: A firm has a cost of equity of 8% and cost of debt of…

A: Weighted average cost of capital generally referred to by its abbreviation 'WACC' is the average…

Q: A portfolio manager is assessing the interest rate risk of three bonds as she considers making an…

A: Part 2: Explanation:Step 1: Understand Macaulay duration:Macaulay duration is a measure of the…

Q: A firm has a tax burden ratio of 0.85, a leverage ratio of 1.5, an interest burden of 0.9, and a…

A: The conceptual formula is represented mathematically:

Q: Henderson's Hardware has an ROA of 11%, a 7% profit margin, and an ROE of 18%. A). What is its…

A: Total assets turnover  Return on assets = Net profit / Assets turnover So, Assets turnover = Return…

Q: alculate the sustainable growth rate

A: Answer:-  Sustainable growth rate = 14.05 % Explanation:-   Total asset turnover = 1 / Capital…

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: You took out a student loan in college and now have to pay $1,900 every year for 20 years, starting…

A: Present Value is the value of all future cash flows discounted at a given rate of interest for the…

Q: Nathan's Food Stop reported a net income of $33,450 and total equity of $68,600. Nathan's…

A: The internal growth rate is the rate which shows the growth without increasing the debt or equity of…

Q: Naomi Nagata is analyzing Gateway Tours and notes the company has a net income of $54 million, total…

A: Return on assets the profitability ratio that measures how well the company is able to utilize it's…

Q: Consider a firm that has 15% of debt. The rate of return for debt is 6% and the rate of return for…

A: Weight of debt of firm(Wd) =15%

Q: A company has a total return on capital before tax of 10%. The interest rate on debt is 4% and the…

A: The company first of debt which is said to be the weighted average cost of capital which consist of…

Q: Williamson, Inc., has a debt-equity ratio of 2. The firm's weighted average cost of capital is 10…

A: Given: Debt to equity = 2 WACC = 10% cost of equity re=21.6% tax = 30%

Q: The company’s ratios are: Current ratio = 1.58% Quick ratio = 1.53% operating margin = 3.49%…

A: Bank loan is a type of debt that can be taken by the firm to raise additional capital. In other…

Q: calculate the • efficiency ratios, • liquidity ratios, • leverage ratios, and • profitability ratios…

A: Based on the income statement and balance sheet of KPC corporation for the current year and the last…

Q: Based on the financial statements calculate the (1) efficiency ratios, (2) liquidity ratios, (3)…

A: A financial ratio, also known as an accounting ratio, is the comparison of two numerical numbers…

Q: A business has a cost of equity of 9.5 percent and a pretax cost of debt of 5.4 percent. The…

A: The unlevered cost of capital is the rate of return which a company expects to earn on its assets…

Q: what is net income? What is ROA? What is ROE?

A: Net Income: It represents the amount of profits/gains made by the company after the reduction of…

Q: answer

A: A) Equity-total assets ratio = 100% - Debt-Total assets ratioEquity-total assets ratio = 100% -…

Q: The company’s ratios are: Current ratio = 1.58% Quick ratio = 1.53% operating margin = 3.49%…

A: The current ratio of a company shows whether it can pay-off the short-term debt from its current…

Q: Assume that a company has the following data: EBIT=1,200 EBITDA Margin=9.4% Tax rate 39% Net…

A: Return on invested capital(ROIC)- This is the amount of return a company makes above the average…

Q: consider a company with ROE of 14.5% and a profit margin of 6.5%. if the total asset turnover is 1.8…

A: Debt equity ratio is a leverage ratio. It gives relative measure of debt to equity. Here Dupont…

Q: Calculate the WACC using the following information: Debt-Equity ratio is 50%. Cost of debt is 8.00%…

A: Given: Debt Equity ratio = 50% Cost of debt = 8% Cost of equity = 10% Tax rate = 35%…

Q: As a consultant to Bass Inc, you have been provided with the following data D1= $0.67, P0= $27.50…

A: Dividend first year (D1)=0.67 Current stock price (P0)=27.50 Constant growth rate (g) =8%

Q: Using WACC, ignoring taxes, compute the cost of capital of a company with debt ratio of 0.75:1 and…

A: Debt ratio = 0.75 Equity ratio = 1-0.75 = 0.25 Debt cost = 4% Equity cost = 5%

Q: Assume that the net profit margin = 9%, assets are 95 cents for every dollar of sales, and equity is…

A: ROE (DuPont Model) = Net Profit Margin x Asset Turnover x Equity Multiplier   Where, Net Profit…

Q: Firm M has a margin of 12%, turnover of 1.5, sales of $870,000, and average stockholders' equity of…

A: Average total Assets = Sale/Turnover ratio = $870000/1.5 = $580000 Net income = 12% of Sales = 12%…

Q: Assume that your firm has a return on assets of 14.7%, sales of $16,625,000, total assets of…

A: Here, Return on Assets14.70%Sales $ 1,66,25,000.00Total Assets $    47,50,000.00Return on…

Q: Keller Cosmetics maintains an operating profit margin of 8.15% and a sales-to-assets ratio of 3.20.…

A: Sales = $1,696,000Operating profit = $138224Net profit = $73656.80

Q: Keller Cosmetics maintains an operating profit margin of 8.25% and a sales-to-assets ratio of 3.40.…

A: Step 1:a) and b) We have to calculate the return on assets and return on equity.First of all, we…

Q: Here’s some info for a company:        Total assets = $50,000 Total liabilities = $30,000,000…

A: Total Assets = $50,000 Total Liabilities = $30,000,000 Profit margin = 10% Sales = $50,000,000

Q: What is the WACC for the following company with: Debt rate: 7% Cost of Equity: 11% Percentage…

A: WACC WACC shows the after-tax cost of the capital raised from all sources by a company. It shows…

Q: Profit margin= 9.2%  Capital intensity ratio= .53 Debt-equity ratio= .68 Net income= $103,000…

A: Performance of a firm can be measure in different ways. Rate of sustainable growth is one of them…