a. Perform a Du Pont analysis on BestCare. Assume that the industry average ratios are as...
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a. Perform a Du Pont analysis on BestCare. Assume that the industry average ratios are as follows: Total margin Total asset turnover Equity multiplier 3.8% 2.1 3.2 Return on equity (ROE) 25.5% b. Calculate and interpret the following ratios for BestCare: Industry Average Return on assets (ROA) Current ratio Days cash on hand Average collection period Debt ratio Debt-to-equity ratio Times interest earned (TIE) ratio Fixed asset turnover ratio 8.0% 1.3 41 days 7 days 69% 2.2 2.8 5.2 a. Perform a Du Pont analysis on BestCare. Assume that the industry average ratios are as follows: Total margin Total asset turnover Equity multiplier 3.8% 2.1 3.2 Return on equity (ROE) 25.5% b. Calculate and interpret the following ratios for BestCare: Industry Average Return on assets (ROA) Current ratio Days cash on hand Average collection period Debt ratio Debt-to-equity ratio Times interest earned (TIE) ratio Fixed asset turnover ratio 8.0% 1.3 41 days 7 days 69% 2.2 2.8 5.2
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Principles of Managerial Finance
ISBN: 978-0134476315
15th edition
Authors: Chad J. Zutter, Scott B. Smart
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