Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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Chapter 7, Problem 6P
Summary Introduction
To determine: The company’s total asset turnover and firm’s equity multiplier.
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Gardial & Son has an ROA of 12%, a 5% profit margin, and a return onequity equal to 20%. What is the company’s total assets turnover? What isthe firm’s equity multiplier?
Gardial & Son has an ROA of 12%, a 4% profit margin, and a return on equity equal to 11%.
What is the company's total assets turnover? Round your answer to two decimal places.
What is the firm's equity multiplier? Round your answer to two decimal places.
Gardial & Son has an ROA of 9%, a 4% profit margin, and a return on equity equal to 20%. What is the company's total assets turnover? What is the firm's equity multiplier? Do not round intermediate calculations. Round your answers to two decimal places.
Total assets turnover:
Equity multiplier:
Chapter 7 Solutions
Intermediate Financial Management (MindTap Course List)
Ch. 7 - Define each of the following terms:
Liquidity...Ch. 7 - Financial ratio analysis is conducted by managers,...Ch. 7 - Prob. 3QCh. 7 - Profit margins and turnover ratios vary from one...Ch. 7 - How might (a) seasonal factors and (b) different...Ch. 7 - Why is it sometimes misleading to compare a...Ch. 7 - Greene Sisters has a DSO of 20 days. The companys...Ch. 7 - Vigo Vacations has $200 million in total assets,...Ch. 7 - Winston Watch’s stock price is $75 per share....Ch. 7 - Reno Revolvere has an EPS of $1.50, a cash flow...
Ch. 7 - Needham Pharmaceuticals has a profit margin of 3%...Ch. 7 - Prob. 6PCh. 7 - Ace Industries has current assets equal to 3...Ch. 7 - The Morrit Corporation has $600,000 of debt...Ch. 7 - The Kretovich Company had a quick ratio of 1.4, a...Ch. 7 - Data for Lozano Chip Company and its industry...Ch. 7 - Prob. 14PCh. 7 - Why are ratios useful? What three groups use ratio...Ch. 7 - Prob. 2MCCh. 7 - Calculate the 2019 inventory turnover, days sales...Ch. 7 - Calculate the 2019 debt ratio,...Ch. 7 - Prob. 5MCCh. 7 - Prob. 8MCCh. 7 - Prob. 9MCCh. 7 - What are some qualitative factors that analysts...
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- Gardial & Son has an ROA of 11%, a 4% profit margin, and a return on equity equal to 20%. What is the company's total assets turnover? What is the firm's equity multiplier? Do not round intermediate calculations. Round your answers to two decimal places.arrow_forwardRY Corporation had a profit margin of 6.25%, a total assets turnover of 1.5, and an equity multiplier of 1.8. What was the firm’s return on equity?arrow_forwardIf Rooters, Inc., has an equity multiplier of 1.90, total asset turnover of 1.20, and a profit margin of 8 percent, what is its ROE?arrow_forward
- Henderson’s Hardware has an ROA of 11%, a 6% profit margin, andan ROE of 23%. What is its total assets turnover? What is its equity multiplier?arrow_forwardIf we know that a firm has a net profit margin of 4.5 % total asset turnover of 0.65, and a financial leverage multiplier of 1.47, what is its ROE? What is the advantage to using the DuPont system to calculate ROE over the direct calculation of earnings available for common stockholders divided by common stock equity?arrow_forwardIf we know that a firm has a net profit margin of 4.3 %, total asset turnover of 0.77, and a financial leverage multiplier of 1.36, what is its ROE? What is the advantage to using the DuPont system to calculate ROE over the direct calculation of earnings available for common stockholders divided by common stock equity?arrow_forward
- O'Brien Inc. has the following data: rRF = 5.00%; RPM = 6.00%; and b = 1.40. What is the firm's cost of equity from retained earnings based on the CAPM? a. 15.41% b. 16.21% c. 12.86% d. 13.40% e. 13.67%arrow_forwardGeneral Electric has a ROA of 11%, a 3.5% profit margin, and a ROE of 14.5%. What is its totalassets turnover? What is its equity multiplier?arrow_forwardO'Brien Inc. has the following data: r RF=5.00%; RP M=6.00%; and b=1.10. What is the firm's cost of equity from retained earnings based on the CAPM? A. 11.83% B. 13.22% C. 11.25% D. 8.93% E. 11.60%arrow_forward
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