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Molodets [167]
2 years ago
15

Y3K Inc has sales of 5783 total assets of 2604 and a debt equity ratio of .75. If its return on equity is 11 percent what is its

net income
Business
1 answer:
Vitek1552 [10]2 years ago
6 0

Based on the information given the net income is $163.66.

<h3>Net income</h3>

First step:

Profit margin = [(ROE)(Total asset)] / [(1 + Debt equity ratio)(Sales)]

Profit margin = [(.11)($2,604)] / [(1 + 0.75)( $5,783)]

Profit margin = 286.44/(1.75) ($5,783)

Profit margin = 286.44/10,120.25

Profit margin = .02830

Second step:

Profit margin = .02830 = Net income / Sales

Net income = .02830($5783)

Net income = $163.66

Inconclusion the net income is $163.66.

Learn more about net income here:brainly.com/question/15530787

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One approach to organization is putting activities that are similar under one person. ________ called this ""unity of direction.
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3 years ago
Lamey Co. has an unlevered cost of capital of 10.9 percent, a tax rate of 35 percent, and expected earnings before interest and
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Answer:

cost of equity is 11.60 %

Explanation:

Given data

cost of capital = 10.9 percent

tax rate = 35 percent

earnings = $21,800

bonds outstanding = $25,000

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to find out

cost of equity

solution

we will find first value of unlevered

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