1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Both Wisconsin and Illinois border Lake Michigan. The lake is becoming polluted and both states are deciding whether or not to c
ZanzabumX [31]

Answer:

B. Wisconsin gains 200, Illinois gains 300

Explanation:

Assuming that one state cleaning the lake does not interfere with the costs and social benefits of the other state (events are independent), Wisconsin will incur 1,200 in costs and receive 1,100 in benefits from its own cleaning and 300 from Illinois' cleaning. Illinois will incur costs of 900 and receive 600 in benefits from its own cleaning and 400 from Wisconsin's cleaning.

The payoff for each state is:

W = -1,200+1,100+300\\W=200\\I=-700+600+400\\I=300

Therefore, Wisconsin gains 200, Illinois gains 300.

3 0
3 years ago
Which of the following best describes the amount of money you'll have if you put $1,000 into a savings account earning 1% annual
Luden [163]
I'd choose C. slighltly more than $1100
7 0
3 years ago
Do you think marketers truly have the power to change the way we think? If so, what are the
EleoNora [17]

Answer:

Yes.

Implication : Manipulate demand and choices

Explanation:

<em>Marketing</em> involves communicating the product to the customers at the right price, to the right people and delivering to the right place.

If one of the 4Ps is marketed well for one product customers will have greater attention of that products against another, thus changing the way we think.

4 0
3 years ago
Find the Mean of 18, 24, 17, 21, 24, 16, 29, 18
dexar [7]

Answer:

20.875

Explanation:

18+24+17+21+24+16+29+18=167/8=20.875

5 0
3 years ago
Read 2 more answers
How are business entrepreneurs and social entrepreneurs different?
julia-pushkina [17]

Both approaches fulfill a need in the market and aim to earn a sustainable profit. The main difference is that social entrepreneurship focuses beyond simply generating a profit, and measures its performance on the positive impact the business makes on society – whether social, cultural or environmental.

5 0
3 years ago
Read 2 more answers
Other questions:
  • Taxes cause deadweight losses because they
    6·2 answers
  • Writing off an uncollectible account affects ________ under the allowance method.
    12·1 answer
  • An attempt to reduce inflation requires​ _____________ fiscal​ policy, which causes real GDP to​ _________ and the price level t
    6·1 answer
  • A grocery store has an average sales of $8000 per day. The store introduced several advertising campaigns in order to increase s
    6·1 answer
  • Major operations and supply planning activities can be grouped into categories based on the relevant time range of the activity.
    8·2 answers
  • Scampini Technologies is expected to generate $125 million in free cash flow next year, and FCF is expected to grow at a constan
    14·1 answer
  • Suppose the price of the product that labor is producing increases and simultaneously the price of capital, which is substitutab
    5·1 answer
  • Whats ur dream job??? not a serious q or nun just bored and want to make a conversation lol
    11·2 answers
  • What are the factors that affect individual productivity?<br>​
    7·1 answer
  • Exquisite Prints is an up-and-coming photography company. To date, producing good photography is the priority of the company - n
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!