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
viktelen [127]
2 years ago
8

A firm has a profit margin of 6% and an equity multiplier of 1.5. Its sales are $230 million, and it has total assets of $115 mi

llion. What is its ROE? Do not round intermediate calculations. Round your answer to two decimal places.
Business
1 answer:
Ket [755]2 years ago
7 0

Answer:

18%

Explanation:

In this question, we use the DuPont Analysis which is shown below:

ROE = Profit margin × Total assets turnover × Equity multiplier

ROE = 6% × 2 × 1.5

        = 18%

The total assets turnover is shown below:

= Sales ÷ total assets

= $230 million ÷ $115 million

= 2

Simply we apply the ROE formula in which the profit margin is multiplied with the total assets turnover and the equity multiplier

You might be interested in
How can the military support your career goals
Setler [38]

Answer:

you can get money to further your education, also engage in stem activities.

Explanation:

4 0
3 years ago
Liz Mulig earns 52,000 per year as a philosophy professor. She receives a raise of 2.5% in a year in which CPI increases by 3.8%
Sindrei [870]

Answer:

She lost $754.05.

Explanation:

Giving the following information:

Liz Mulig earns 52,000 per year as a philosophy professor. She receives a raise of 2.5% in a year in which CPI increases by 3.8%.

<u>The rise in her salary allows her to increase her purchasing power. On the contrary, inflation decreases purchasing power. We need to calculate the differences between both effects and determine whether she can buy more or less.</u>

<u></u>

Increase in salary= 52,000*1.025= $53,300

Inflation effect= 52,000/(1-0.038)= $54,054.05

To maintain her purchasing power, now, she needs to earn $54,054.05.

She lost $754.05.

6 0
3 years ago
Please help
Umnica [9.8K]

You are responsible for implementing activities for a group of six foreign students and eight American students who are they

7 0
3 years ago
"You found out that now you are going to receive payments of $8,500 for the next 16 years. You will receive these payments at th
Paraphin [41]

Answer:

Present value= $62,722.875≈ $62,723

Explanation:

To calculate present value use this formula

Present value= Yearly payment*{[1-(1+rate)^-period]/rate}

Present value= 8,500*{[1-(1+0.11)^-16]/0.11}

Present value= 8,500* {0.8117/0.11}

Present value= 8500*7.379= $62,722.875

5 0
2 years ago
Your corporation has a marginal tax rate of 35% and has purchased preferred stock in another company. The before-tax dividend yi
Leni [432]

Answer:

5.37%

Explanation:

According to the scenario, computation of the given data are as follow:-

We can calculate the company’s after tax return on preferred by using following formula:-

Company’s After Tax Return = Before Tax Dividend Yield Rate on Preferred Stock × [1 - (1 - Dividend Exclusive) × (Tax Rate)]

= 6% × [1 - (1 - 70%) × (35%)]

= 0.06 × [1 - (1 - 0.70) × (0.35)]

= 0.06 × [1 - (0.30) × (0.35)]

= 0.06 × (1 - 0.105)

= 0.0537

= 5.37%

We simply applied the above formula to determine the company after tax return

8 0
2 years ago
Other questions:
  • Which course of action would the WTO take if member A tries to impose a trade barrier against member B?
    9·1 answer
  • On July 1, 2014, Livingston Corporation, a wholesaler of manufacturing equipment, issued $46,000,000 of 20-year, 10% bonds at a
    13·1 answer
  • 1. Charlie Corporation transfers $700,000 stock and land with a value of $200,000 (basis of $95,000) to Sebago for most of its a
    6·1 answer
  • Which of the following is a fixed cost for a company that sells greeting cards online and mails the printed cards to customers?
    10·1 answer
  • Grocery stores frequently put new products in high visibility locations such as the end of an aisle or near the checkout lanes.
    6·1 answer
  • _______is a very useful method for determining whether respondents have any difficulty understanding the questionnaire and wheth
    6·1 answer
  • The earned value divided by the actual, cumulative cost of the work to date is the: Budget efficiency index. Schedule performanc
    5·1 answer
  • What is the primary purpose of insurance
    7·2 answers
  • atman Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total A
    10·1 answer
  • Menlo Company distributes a single product. The company's sales and expenses for last month follow:
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!