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Mama L [17]
3 years ago
8

King enterprises has an Total Asset Turnover ratio of 5.0, Profit margin of 3%, and a ROE equals to 18%. What is the firm's equi

ty mulitplier (Total Asset/Equity)? Use DuPont Analysis.
Business
1 answer:
LenaWriter [7]3 years ago
5 0

Answer: 1.2

Explanation:

The DuPont Analysis is a method of calculating the Return on Equity by using various other ratios. It shows the relatiosnhips between variables in a firm and can help the firm know which areas to target to improve ROE.

Using the DuPont Analysis, the Return on Equity is;

ROE = Profit Margin * Asset Turnover * Equity Multiplier

18% = 3% * 5 * Equity Multiplier

18% = 0.15 * Equity Multiplier

Equity Multiplier = 18%/0.15

Equity Multiplier = 1.2

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Explanation:

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3 years ago
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The common stock of Zeta Group sells for $42 per share, has a rate of return of 12.2 percent, and a dividend growth rate of 1.8
Soloha48 [4]

Answer:

The amount of the last annual dividend paid is <u>$4.3</u>.

Explanation:

Given:

The common stock of Zeta Group sells for $42 per share, has a rate of return of 12.2 percent, and a dividend growth rate of 1.8 percent annually.

Now, to find the amount of last annual dividend paid.

Let the amount of last annual dividend paid be l.

Price of per share (p) = \$42.

Rate of return (r) = 12.2\%.

Rate of dividend growth (g) = 1.8\%.

Now, to get the amount of last dividend paid we put formula:

p=\frac{l(1+g)}{r-g}

42=\frac{l(1+1.8\%)}{12.2\%-1.8\%}

42=\frac{l(1+0.018)}{0.122-0.018}

42=\frac{l\times 1.018}{0.104}

<em>Multiplying both sides by 0.104 we get:</em>

<em />4.368=1.018l<em />

<em>Dividing both sides by 1.018 we get:</em>

4.3=l

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Therefore, the amount of the last annual dividend paid is $4.3.

6 0
3 years ago
The Gap has recently produced a new line of athletic wear that closely competes with a designer label in its quality, utility, a
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Answer:

<em>Behavioristic </em>

Explanation:

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Y_Kistochka [10]

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So, both the expenses are those expense which are necessary for an individual or person and therefore, cannot be reduced in order to produce the more savings.

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Roberta is a customer service representative at a car rental company. Read the passage. Which actions might lead to increased cu
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Answer:

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