Do a ratio decomposition analysis for the Mordett corporation of Concept Check 1, 14.2 preparing a table
Question:
Do a ratio decomposition analysis for the Mordett corporation of Concept Check 1, 14.2 preparing a table similar to Table 14.6.
Concept Check 1
Mordett is a company with the same assets as Nodett and Somdett but a debt/equity ratio of 1.0 and an interest rate of 9%. What would its net profit and ROE be in a bad year, a normal year, and a good year?
Transcribed Image Text:
TABLE 14.6 Ratio decomposition analysis for Nodett and Somdett Bad year Nodett Somdett Normal year Nodett Somdett Good year Nodett Somdett ROE 0.030 0.018 0.060 0.068 0.090 0.118 (1) Net Profit Pretax Profit 0.6 0.6 0.6 0.6 0.6 0.6 (2) Pretax Profit EBIT 1.000 0.360 1.000 0.680 1.000 0.787 (3) EBIT Sales (Margin) 0.0625 0.0625 0.100 0.100 0.125 0.125 (4) Sales Assets (Turnover) 0.800 0.800 1.000 1.000 1.200 1.200 (5) Assets Equity 1.000 1.667 1.000 1.667 1.000 1.667 (6) Compound Leverage Factor (2) × (5) 1.000 0.600 1.000 1.134 1.000 1.311
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (5 reviews)
Ratio Decomposition Analysis for Mordett Corporation Based on Table 146 from Concept Check 1 142 Yea...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Essentials Of Investments
ISBN: 9780073368719
7th Edition
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
Question Posted:
Students also viewed these Business questions
-
Mordett is a company with the same assets as Nodett and Somdett but a debt/equity ratio of 1.0 and an interest rate of 9%. What would its net profit and ROE be in a bad year, a normal year, and a...
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Solve the following initial value problem. y" + 2y + 17y=0; y(0) = 1, y'(0) = -1
-
What problems do research directors face in their roles as managers?
-
For the Matrn process, show that the sequence of partial averages \(\bar{X}_{n}\) has a limit \(\bar{X}_{\infty}=\lim _{n ightarrow \infty} \bar{X}_{n}\). For \(n \geq 2\), what can you say about the...
-
Explain the Chinese Room argument, and present some of the arguments against it, and the counter-arguments. Which do you find most convincing? How does this affect your view on the overall worth of...
-
An analyst predicted last year that the stock of Logistics, Inc., would offer a total return of at least 10 % in the coming year. At the beginning of the year, the firm had a stock market value of...
-
1. Write the syntax definitions of the following objects: (a) Natural number (b) Unsigned integer (c) Integer (d) Odd number (e) Even number (1, 2, 3,...) (0, 1, 2, 3,...) (..., -2, -1, 0, 1, 2, ...)...
-
What were GIs ROE, P/E, and P/B ratios in the year 2008? How do they compare to the industry average ratios, which were: How does GIs earnings yield in 2008 compare to the industry average? ROE =...
-
ABC stock has an expected ROE of 12% per year, expected earnings per share of $2, and expected dividends of $1.50 per share. Its market capitalization rate is 10% per year. a. What are its expected...
-
Students are queued up at the registrars office when the registration windows open at 8 a.m. There are four open windows; students approach the first open window as they advance to the front of the...
-
Here is the link to the video of A Raisin n the Sun (If you have trouble opening it, download it): https://www.dropbox.com/s/4v51tifec57av3a/A%20Raisin%20In%20The%20Sun%20%281989%29.mp4?dl=0 For...
-
What does a warranty specify to the buyer of a product or service?
-
what role do stereotypes play in gaslighting?
-
What recommendations would you make to effectively analyze social, political, and economic dynamics and their ability to influence culture in diverse settings ?
-
Why should we adopt a progressive agenda, and what will it take to make it happen?
-
For the following experiment, indicate whether it was single-blind, double-blind, or not blinded at all. Explain your reasoning. Makers of a new frozen entre arranged for it to be served to randomly...
-
Why are stocks usually more risky than bonds?
-
Three mutually exclusive projects are being considered: When each project reaches the end of its useful life, it would be sold for its salvage value and there would be no replacement. If 8% is the...
-
Consider three mutually exclusive alternatives: Which alternative should be selected? (a) If the minimum attractive rate of return equals 6%? (b) If MARR =9%? (c) If MARR = 10%? (d) If MARR = 14%?...
-
Consider the three alternatives: Which alternative should be selected? (a) If MARR =6%? (b) If MARR =8%? (c) If MARR = 10%? Do Nothing Year A -$100 -$150 +30 +43 +43 2 +30 +30 +43 +43 4 +30 +30 +43
-
How do transformational and transactional leadership styles influence organizational culture and employee morale, and in what contexts might each be more effective?
-
a. What is Lauren's position? b. What are Lauren's interests? 2. a. What is Jules' position? b. What are Jules' interests? 3. a. What is Lauren's BATNA? b. What is Jules' BATNA? 4. a. How effective...
-
Titus, a wealthy oil magnate, is a huge fan of Gram Parsons, the influential musician who co-founded the Flying Burrito Brothers and who died at age 26 of a drug and alcohol overdose in 1973. He has...
Study smarter with the SolutionInn App