Decorative Paintings has total debt of $69,000, total equity of $445,000, and a return on equity of 10 percent. What is the return on assets? 6. If the equity multiplier for a firm is 4, what is the debt ratio for that firm?
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5. Decorative Paintings has total debt of $69,000, total equity of $445,000, and a
6. If the equity multiplier for a firm is 4, what is the debt ratio for that firm?
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- The Wilson Corporation has the following relationships: Sales/Total assets 2.0 Return on assets (ROA) 4.0% Return on equity (ROE) 6.0% What is Wilson's profit margin and debt ratio? (Ctrl) num k 8 # $ 9 7 8 3 4 5 6 5 6 Y E R 2.You have access to the following information and want to calculate the debt-to-equity ratio for the firm. Return on Equity: 23.87% Profit Margin: 13.81% Total Asset Turnover: 0.65 Answer as a DECIMAL using two decimal places.1.If Gwen, Inc. has a total debt ratio of 0.8, a total asset turnover of 0.33, and a net profit margin of 10%. Calculate the return on equity (ROE). Enter percentages as decimals and round to 4 decimals.
- 3. Company WACC is 20%. Debt interest rate is 4% and D/ E ratio is 1,6. What is the cost of equity? HOW YOU CALCULATE THIS WITH EXCEL AND USING EXCEL FORMULAS?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.)Q.3. Firm A has a Return on Equity (ROE) equal to 24%, while firm B has an ROE of 15% during the same year. Both firms have a total debt ratio (Debt/total Assets) equal to 0.8. Firm A has an asset turnover ratio of 0.9, while firm B has an asset turnover ratio equal to 0.4. Which firm is better and why? ****
- 4.Easy Corp.’s return on assets measure is 0.20 (20%. Its return on equity measure is 0.25 (25%). What is the firm’s equity multiplier? (Please show work and explain)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 0.58Make sure you provide complete answers, and show your work with calculation problems If a company decides to increase its ratio of total debt / total assets from 30% to 50% as a means of increasing its return on equity (ROE), and it is able to maintain a 7.5% return on assets(ROA), what is the return on equity (ROE) with the two different total debt/total asset ratios?
- 1. The Wilson Corporation has the following relationships:Sales/Total assets 2.0Return on assets (ROA) 4.0%Return on equity (ROE) 6.0%What is Wilson’s profit margin and debt ratio?If the D/E ratio of a firm is 1.4, what is the firm's weight on equity? Hint: the formula is on your excel project sheet. Use decimal notation (14.26% would be 14.26).Company A's simple EPS is $1 and diluted EPS is $.50. Company B's simple EPS is $1.5 but his diluted EPS is $.25. What would this tell you about the company? Next, suppose Company A's debt to equity ratio is 2 and Company's B's debt to equity ratio is .5. What would this tell you about the company? Besides profitability, what would the measures about tell you about how the company raises money?