Consider this scenario.

Braam fire prevention corp. has a profit margin of 9.70 percent, total asset turnover of 1.52, and roe of 18.58 percent. what is

Novosadov [1.4K]

Braam fire prevention corp. has a profit margin of 9.70 percent, total asset turnover of 1.52, and roe of 18.58 percent. The firm's debt-equity ratio will be 0.91.

<h3>What is debt- equity ratio?</h3>

A phrase used in accounting to describe the capital structure of a company is the debt-equity ratio. This ratio is computed specifically by dividing a company's total debt by its entire equity.

<h3>monetary ratios</h3>

Financial ratios are measurements that analysts use to assess business performance and to compare those ratios with other companies in the same industry. They are evaluated according to the firm's financial statements.
The liquidity ratios, solvency ratios, profitability ratios, and market outlook ratios are the common classes into which the financial ratios can be divided. Each lesson will highlight a different aspect of the company.
Before performing their analysis, analysts should, however, evaluate the completeness and transparency of the provided financial statements. The financial statements could be manipulated by some internal investors for personal gain.

ROE = profit margin × asset turnover × equity multiplier

18.58% = 9.70% × 1.52 × equity multiplier

equity multiplier = 1.91

Then debt-equity ratio is calculated as:

debt-equity ratio = equity multiplier - 1

debt-equity ratio = 1.91 - 1

debt-equity ratio = 0.91

To learn more about equity ratio from given link

brainly.com/question/26354272

#SPJ4

7 0

1 year ago

Quincy had no idea how consumers would respond to a survey about attitudes toward a program opening up space travel to private c

Grace [21]

Answer:

a survey with open-ended questions

Explanation:

Using a survey with open-ended questions will give Quincy's survey respondents the opportunity to give their opinions about opening up space travel to private citizens.

Consumers will also be able to give feedback on their experience with the survey and other valuable input as regards improvement of the program.

7 0

4 years ago

megan hughes deposits $2300 in an account that pays simple interest. when she withdraws her money 8 months later, she receives

Iteru [2.4K]

2484
(2300)
---------
184

184 / 8 = 23

23 / 2300 = .01 -->1%

7 0

3 years ago

Gordon Chemicals Company acquires a delivery truck at a cost of $39,700 on January 1, 2017. The truck is expected to have a salv

Kipish [7]

Answer:

First Year depreciation is $18,750

Second Year depreciation is $ 9,375

Explanation:

Note that the Method used to provide for Depreciation is Declining Balance Method.

The established rate is used to compute depreciation on the remaining balance after taking account of previous depreciation charges.

<u>Which is the appropriate rate to use?</u>

The question gave us an assumption, "Assuming the declining-balance depreciation rate is double the straight-line rate"

<u>So Working with this Assumption the Calculations are as follows</u>

Straight Line Rate = 1/4×100 = 25%

Therefore Declining Balance Rate = 2×25%=50%

First Year depreciation is = Depreciable Amount ×Diminishing Rate

=($39,700-$2,200) ×50%

= $18,750

Second Year depreciation is = Carrying Amount × Diminishing Rate

=(($39,700-$2,200) - $18,750)×50%

= $ 9,375

Terms:

(1) Depreciable Amount is Cost less Salvage Value

(2)Carrying Amount is Cost less Accumulated depreciation to date

<u />

3 0

3 years ago

MC Qu. 122 Walter Enterprises expects... Walter Enterprises expects its September sales to be 20% higher than its August sales o

padilas [110]

Answer:

Ending cash balance $67,900

Explanation:

The computation of the ending cash balance is given below:

Schedule of expected cash collection for September

From august sales (70% of 225,000) 157,500

From sept. sales (30% of 270,000) 81,000

Total cash collection$238,500

Now

Schedule of expected cash payment

For august purchase (80% of 175,000) 140,000

Foor september purchase (20% of 195,000) 39,000

Total cash payment $179,000

Now

Beginning cash balance 8,400

Budgeted cash collection 238,500

Total available cash 246,900

Budgeted cash payment -179,000

Ending cash balance $67,900

7 0

3 years ago