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A: DuPont equation can be used to find the ROE (return n equity). This equation requires profit margin,…
Q: A firm has a debt to equity ratio of 40%, debt of $600,000, and net income of $100,000. What is the…
A: Debt to Equity ratio = Debt/Equity 40% = $600,000 / Equity Equity = $600,000 / 40% Equity = $1500000
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A: The profit margin is 7%.Equity multiplier is 1.9.Sales are $230 million.Total assets are $92…
Q: The firm has sales of $6,000 and a profit margin of 6.5 percent. What is the firm’s net income?
A: The remaining amount of the revenue after the deductions of the expenses and the tax amount is term…
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A: When all the earnings available for common shareholders are distributed to common shareholders, the…
Q: Suppose a firm is paying dividend of $500000 out of net income of $2 million. What is the firm's…
A: Given: Dividend = $500000 Net income = $2000000
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A: Dividend paid = Retained earnings - Equity financing required Dividend will only be paid if the…
Q: What is the firm's PEG ratio?
A: PEG ratio displays the relationship between the Earnings growth and the P/E ratio over a specific…
Q: A firm has a profit margin of 5.5% and an equity multiplier of 3.0. Its sales are $140 million, and…
A: Profit margin = 5.5%Equity multiplier = 3.0Sales = $140 millionTotal assets = $84 million
Q: If you know that a firm has its equity increased by JD10,000 . The firm has additional investments…
A: Retained earnings: Retained earnings is the earning set aside by the business from a portion of…
Q: Suppose a firm pays total dividends of $456,000 out of net income of $1.9 million. What would the…
A: Calculation of payout ratio:Hence, the payout ratio is 0.24.
Q: firm has net income of $2.3 million.the firms capital structure consists of equity of $15 million…
A: Sustainable Growth Rate(SGR) is the maximum growth rate that can be sustained by the company without…
Q: Suppose a firm has a retention ratio of 60 percent, net income of $8 million, and 4 million shares…
A: Retention ratio = 60% Net income = $8 million Number of shares = 4 million
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A: Long Term Debt: A debt issued by the corporation having a term of more than one year is called…
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A: Growth rate can be calculated from the return on equity and retention ratio of the company that is…
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A: price per share =(value of the assets- current liabilities)/no of shares outstanding…
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A: Calculation of Enterprise Value Enterprise value = Market Capitalization + Outstanding debt – Cash…
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A: Current Ratio: A current ratio is a calculation that provides the relation between current assets…
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A: In balance sheet, shareholders’ equity part contains the retained earnings of the company. Retained…
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A: Formula:
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A: Net Profit Ratio(NPR) is used determine profitability of entity. It shows proportion of turnover of…
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A: Net income (NI) = P400,000 Debt ratio = 30% Equity ratio (ER) = 100%-30% = 70% Investment…
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A: Net income: Profits available after deducting all the expenditure is called as net income.…
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A: Leverage is an investment technique that involves the use of borrowed money—specifically, the use of…
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A: EPS stands for earnings per share. EPS means the amount of profit a company makes per share.…
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A:
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A: The financial ratios refer to the ratios that are calculated using the financial data from the…
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A: The computation of ROE is as follows: Hence, the return on investment is 4.50%
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A: The degree of financial leverage shows the potential impact of change in operating income that is…
Q: A firm's current market value of equity is $100 million. It has one million shares outstanding. The…
A: Current market price per share Current market price per share = Market value of equity / Number of…
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A: Information povided
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A: In the given question we need to compute the value of the firm.
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A: Given information: Sales amounted to $200 million, NOPAT of $12 million, Net income of $8 million,…
Q: A company retains 7,50,000 out of its current earnings. The expected rate of return to the…
A: Cost of retained earnings = Amount of Retained Earnings X [Expected Percentage of return on funds to…
Q: Suppose a firm pays total dividends of $420,000 out of net income of $3.7 million. What would the…
A: Pay-out ratio:The pay-out ratio is the ratio between the total dividend and net income. it is also…
Q: A firm has total sales of $64 million. It has gross profit of $12 million, operating income of $8.5…
A: Total sales is $64million Gross profit is $12million Operating income of $8.5 million Net income of…
Q: Suppose a firm pays total dividends of $420,000 out of net income of $3.7 million. What would the…
A: Dividend payout ratio refers to the fraction of net income that a company pays to its shareholders…
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A: Hey, since there are multiple subpart questions posted, we will answer the first three questions. If…
Q: A firm has a total book value of equity of $300,000, a market to book ratio of .33 (one-third), and…
A: Given information : The market value of a company refers to the market price of the stock per share…
Q: Consider a retail firm with a net profit margin of 3.5%, a total asset turnover of 1.8, total assets…
A: ROE is Return on equity, which means how much net income has been attributable to the equity…
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A: Answer) Under residual model, dividend is paid to common stockholders after deduction of amount to…
Suppose a firm pays total dividends of $35,000 out of net income of $200,000. What would the firm's payout ratio be?
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- Suppose a firm pays total dividends of $420,000 out of net income of $3.7 million. What would the firm's payout ratio be?Suppose a firm pays total dividends of $420,000 out of net income of $3.7 million. What would the firm's payout ratio be? Multiple Choice .42 .114 1.14 8.810As the assistant to the CFO of Johnstone Inc., you must estimate its cost of common equity. You have been provided with the following data: D0 = $0.80; P0 = $22.50; and g = 8.00% (constant). Based on the DCF approach, what is the cost of common from retained earnings? Please show formula and answer
- Suppose a firm is paying dividend of $500000 out of net income of $2 million. What is the firm's payout ratio?If a firm has an EV of $820 million and EBITDA of $187 million, what is its EV ratio?If 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 1.37, 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? The firm's ROE is %. (Round to two decimal places.) 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? (Select from the drop-down menus.) Observe the modified DuPont formula (see) and notice that each component can be compared with industry standards to assess the firm's performance. Therefore, the advantage of using the Dupont system is that ROE is broken into three distinct components. Starting at the right we see how has increased assets over the owners' original equity. Next, moving to the left, we see how efficiently the firm used its sales. to…
- A firm has total book value of equity of $2 million, a market to book ratio (market price/book value) of 4, and a book value per share of $5.00. What is the market value per share of the firm's equity?calculate the firms: d) P/E ratio given the market price above e) ROE, f) Debt-equity ratio g) Times Interest Earned Ratio, if interest and tax are 15% and 30% of sales respectively.Assume that your firm has a return on assets of 14.7% , sales of $16,625,000, total assets of $4,750,000, a return on equity of 36.75%, an interest rate on total debt of 10 percent, and a tax rate of 40 percent. Given this information, determine the firm's basic earnings power. (Hint: you may need to work an income statement backwards to get EBIT, in which case you will need to determine the firm's net income or profit, as well as its interest expense on total debt.)
- O'Brien Inc. has the following data: rRF = 5.00%; RPM = 9.00%; and b = 0.65. What is the firm's cost of equity from retained earnings based on the CAPM?You have the following ratios for a firm you're analyzing: Working capital / total assets = 0.7 Retained earnings / total assets = 0.3 EBIT / total assets = 0.2 market value of equity / book value of LT debt = 1.3 sales / total assets = 0.4 Calculate the firm's Z-score. EnterIf 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?