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Mama L [17]
2 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]2 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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Katyanochek1 [597]

Answer:

a

Explanaton:

finance has to do with investing

5 0
3 years ago
Read 2 more answers
Ms. Jorgen recently moved from Boston to Pittsburgh to take a job with OP Inc. She sold her home in Boston and OP paid the $14,5
drek231 [11]

Answer:

Ms. Jorgen will report only the Taxable gain and losses from the purchase and will not report the commission paid for by OP Inc

Explanation:

Gross Income Definition is total amount( the amount is $14500), in cash(the $14500 is cash) or otherwise ( asset value), Accrued to, received by or in favor of ( the amount of $14500 is in paid in favor of her) and must not be of a capital nature ( the commission is of a capital nature. Therefore it will not be reported as income.

5 0
3 years ago
At the beginning of the year, Poplock began a calendar-year dog boarding business called Griff's Palace. Poplock bought and plac
valina [46]

Answer: See attachment

Explanation:

a. What is Poplock’s year 1 depreciation expense for each asset?

See attachment. Note that the depreciation for the assets were calculated as the original basis × the rate. e.g for Computer equipment, the Depreciation was, the original basis of $5000 × the rate of 20% which equals $1,000.

b. What is Poplock’s year 2 depreciation expense for each asset?

Check attachment.

Depreciation for computer = $1600

Depreciation for day grooming furniture = $1714

Depreciation for popup truck = $3200

Depreciation for commercial building = $6923

6 0
2 years ago
Scott owns a welding business in alabama. every year, when he meets with his accountant to file his tax returns, he claims that
kykrilka [37]
For a loss to be shown on his tax return, the total expenses (prices of goods, supplies, transportation and so on) must be larger than the sale or revenue. 
Since he's always showing profit, this means that his revenue his more.

Scott may be including some illegitimate factors (factors that are not usually included in the calculation) in his calculations. These factors may lead to hypothetical loss for him.
8 0
3 years ago
Read 2 more answers
Henry works as an assembly line worker at MM Corporation. Two weeks back, he suffered multiple fractures while trying to repair
Ivenika [448]

Answer:

he is still getting paid while he is out. He probably has a doctors note.

Explanation:

idk what the question is.

8 0
3 years ago
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