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Ulleksa [173]
2 years ago
7

New steel products has total assets of $820,470, a total asset turnover rate of 1. 39, a debt-equity ratio of 2. 8, and a return

on equity of 0. 34 percent. What is the firm's net income?
Business
1 answer:
nadya68 [22]2 years ago
7 0

The firm's net income is $114,045,330.

Total Asset Turnover = Sales / Assets

or, 1.39 = Sales / $820,470

Sales = $820,470 × 1.39 = $1,140,453.3

Now,

Equity Multiplier

= Assets / Equity

= (Debt + Equity) / Equity

= (2.8 + 1) / 1

= 3.8

(Debt equity ratio has been used here)

As per Dupont Analysis,

ROE = Profit margin x Asset Turnover x Equity Multiplier

or, 0.34% = Profit Margin x 1.39 x 3.8

Profit Margin = 5.282%

Profit Margin = Net Income / Sales x 100

5.282% = Net Income / $1,140,453.3 x 100

Thus, Net Income = $114,045,330

Net income is an amount which an individual or business makes after deducting costs, taxes, and allowances. Thus, net income is what the business has left over after all its expenses.

To learn more about Net income here:

brainly.com/question/1347024

#SPJ4

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Every T account has two sides, credit and credit side.<br><br>True<br>False​
ioda

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Explanation:

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According to the CAPM, what is the market risk premium given an expected return on a security of 15.8%, a stock beta of 1.1, and
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Answer:

The risk premium on market is 8%

Explanation:

The CAPM or Capital Asset Pricing Model is used to calculate the required rate of return on a stock which is the minimum return that is expected or required by the investors to invest in a stock based on its systematic risk as measured by the beta of the stock.

The formula to calculate r under the CAPM is,

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To calculate the risk premium on market, we will input the available values for r, rRF and beta in the equation above.

0.158 = 0.07 + 1.1 * rpM

0.158 - 0.07 = 1.1 * rpM

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rpM = 0.08 or 8%

So, the risk premium on market is 8%

3 0
3 years ago
PLEASE HELP!!!!!
Eddi Din [679]
B I think but hope I helped prob not tho
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The law of demand states that​ ______, the​ ______ the price of a​ good, the smaller is the quantity demanded; and the​ ______ t
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Answer:

The correct answer is letter "D": other things remaining the​ same; higher; lower..

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According to the demand law, <em>ceteris paribus</em>, as long as the price of a good or service decreases the quantity demanded increases. If the price increases, the quantity demanded for that good or service decreases. The relationship between quantity demanded and the price is inversely proportional.

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