Nuber Company has a debt equity ratio of .80. Return on assets is 9.7 percent, and total
Question:
Nuber Company has a debt– equity ratio of .80. Return on assets is 9.7 percent, and total equity is $ 735,000. What is the equity multiplier? Return on equity? Net income?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 61% (13 reviews)
The equity multiplier is EM 1 DE EM 1 080 180 ...View the full answer
Answered By
Zablon Gicharu
I am an educator who possesses the requisite skills and knowledge due to interacting with students for an extended period. I provide solutions to various problems in step-by-step explanations, a well-thought approach and an understandable breakdown. My goal is to impart more straightforward methodologies and understanding to students for more remarkable achievements.
5.00+
4+ Reviews
10+ Question Solved
Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Question Posted:
Related Video
The Dupont analysis is an expanded return on equity formula, calculated by multiplying the net profit margin by the asset turnover by the equity multiplier. The DuPont analysis is also known as the DuPont identity or DuPont model.This Video will guide on how to calculate return on Equity and estimate profitability of shareholders using DuPont Analysis.
Students also viewed these Corporate Finance questions
-
Is the statement Return on assets is a better measure of profitability than profit margin true or false and why?
-
Isolation Company has a debt equity ratio of .80. Return on assets is 7.9 percent, and total equity is $480,000. What is the equity multiplier? Return on equity? Net income? Just Dew It Corporation...
-
A companys return on assets is a function of its ability to turn over its investment (asset turnover) and earn a profit on each dollar of sales (return on sales). For each of the following...
-
Find a vector parametrization of the intersection of the surfaces x 2 + y 4 + 2z 3 = 6 and x = y 2 in R 3 .
-
a. If a couple plans to have 8 children (it happens), how many different gender sequences are possible? b. If a couple has 4 boys and 4 girls, how many different gender sequences are possible? c....
-
What is the stagnation point parameter? Why does the total enthalpy remain unchanged and the total pressure decreases in the steady adiabatic friction pipeline flow?
-
Two suppliers of machine parts delivered large shipments. A simple random sample of 150 parts was chosen from each shipment. For supplier A, 12 of the 150 parts were defective. For supplier B, 28 of...
-
Youve completed your vacation in a foreign country. At the airport, you discover you have the equivalent of $20 local currency left over. The exchange control officer tells you that you cant convert...
-
Mr. Sheppard was a patient at Citizens Hospital, where he was admitted complaining of stomach pains. Tests revealed that Mr. Sheppard had an inflamed appendix, and surgery was indicated. Once the...
-
A firm received an order for 200 electric golf carts. The carts must be ready for delivery by week 8. Based on the following information, finish the questions. Parts List for Electric Golf Cart...
-
A ratio that is becoming more widely used is return on investment. Return on investment is calculated as net income divided by long-term liabilities plus equity. What do you think return on...
-
Y3K, Inc., has sales of $ 2,700, total assets of $ 1,310, and a debt equity ratio of 1.20. If its return on equity is 15 percent, what is its net income?
-
James and Wanda Barns, husband and wife, were killed in a head-on aut o mobile collision. It was impossible to determine who died first, and neither one had a will. The couple owned the following...
-
What are invasion of privacy issues usually deals with the unpermitted use of a person's name or likeness for another's benefit or advantage?
-
Eugene has $36,000 that he would like to invest in a mutual fund with an NAV of $27.37 per share.The prospectus of Mutual Fund ABC indicates a front-load fee of 4.2%.How many shares of Mutual Fund...
-
Given g(x) = 8x2-x+2, find the following. (a) g(0) (b) g(-1) (c) g(r) (d) g(x + h)
-
Data for Lozano Chip Company and its industry averages follow. Lozano Chip Company: Balance Sheet as of December 31, 2019 (Thousands of Dollars) Cash Receivables Inventories Total current assets Net...
-
The significance of an event to a particular financial market or stock can be determined through changes in the exchange index or changes in individual stock prices. Explain how to ensure that the...
-
Two options for networking are using interrupts or polling, and using DMA or using the processor via load and store instructions. 1. If we want the lowest latency for small packets, which combination...
-
(a) Given a mean free path = 0.4 nm and a mean speed vav = 1.17 105 m/s for the current flow in copper at a temperature of 300 K, calculate the classical value for the resistivity of copper. (b)...
-
Consider a dynamic system whose plant transfer function and proportional controller are given (respectively) by \[\begin{aligned}G(s) & =\frac{1}{20 s} \\D(s) & =K=20\end{aligned}\] The plant is in a...
-
Cash Flow Intuition A project has an initial cost of 1, has required return of R, and pays C annually for N years. a. Find C in terms of l and N such that the project has a payback period just equal...
-
Cash Flow Intuition A project has an initial cost of 1, has required return of R, and pays C annually for N years. a. Find C in terms of l and N such that the project has a payback period just equal...
-
Opportunity Cost In the context of capital budgeting, what is an opportunity cost?
-
A(n) 0.0712 kg baseball is thrown with a speed of 21.8 m/s. It is hit straight back at the pitcher with a final speed of 13.5 m/s. What is the magnitude of the impulse de- livered to the ball? Answer...
-
Abraham, Andrew Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows:...
-
An 855 kg drag race car accelerates from rest to 111 km/h in 0.749 s. What change in momentum does the force produce? Answer in units of kg. m/s. part 2 of 2 What average force is exerted on the car?...
Study smarter with the SolutionInn App