Rainbow Company has a debt-equity ratio of 1.25. Return on assets is 7.5 percent, and total equity

Question:

Rainbow Company has a debt-equity ratio of 1.25. Return on assets is 7.5 percent, and total equity is $625,000. 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:

Related Book For book-img-for-question

Essentials Of Corporate Finance

ISBN: 9780073382463

7th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

See More Books

Question Posted: Jun 12, 2019 09:15 AM

See More Questions

If Mudvayne, Inc., has a 9 percent ROA and a 15 percent payout ratio, what is its internal growth rate?
The Delson Company has an ROA of 9 percent, an 8 percent profit margin, and an ROE of 14 percent. What is the companys total asset turnover? What is the equity multiplier?
The Rose Company has net income of $149,850. There are currently 25.45 days' sales in receivables. Total assets are $838,000, total receivables are $146,300, and the debt-equity ratio is 0.75. What...
Rare Earth Clothing is a retail store specializing in women's clothing. The store has established a liberal return policy for the holiday season in order to encourage gift purchases. Any item...
For each matrix A, find a basis for the kernel and image of TA, and find the rank and nullity of TA. (a) (b) (c) (d) 102 213 21-13-1 103 11-42 1252 2112 1340 0336 1123 21-0
Solve the system of equations r = sin, r = sin 2, for 0 < 2.
From this abbreviated description, what resources and capabilities do you think the NBA has? Does the fact that an organization Is striving for global success make It more difficult to develop unique...
The financial statements of Marks and Spencer plc (M&S) are available at the books companion website or can be accessed at corporate.marksandspencer....
1 4 . On the balance sheet, Columbia Sportswear Company lists Goodwill. A company reports Goodwill on its balance sheet only when it purchases an existing business, paying more than the net fair...
Consider a temperature control model described by: x + x + U *= 13x + 2x0, *o = 0, (1) where 21, 2 are internal temperatures, and to the outside temperature assumed constant. u is the control input...
For the past year, De Vries, Inc., had a cost of goods sold of $59,382. At the end of the year, the accounts payable balance was $13,689. How long on average did it take the company to pay off its...
Based on the following information, calculate the sustainable growth rate for Southern Lights Co.: Profit margin = 8.4% Capital intensity ratio = 0.45 Debt-equity ratio = 0.60 %3D Net income =...
To complete this assignment, read the article by Noah P. Barsky and Anthony H. Catanach Jr. titled, "Every Manager Can Be an Innovator" (Strategic Finance, August 2011, pp. 22-29). The article...
The ratio of CEO pay to that of an average employee increased over a period of 50 years from 24:1 to 275:1. Is this increasing gap ethically sound, in your opinion? Should CEO pay be limited in any...
Suppose you are considering buying a machine that costs $7,000. It will generate revenues of $1,500 for the next 3 years, and then $1,000 for the following 5 years. What is the payback period of this...
National Bakery Limited is the main supplier of a variety of baked products to customers in Kingston. The company currently makes 25,000,000 a variety of baked products annually which uses baking...
Q1. Discuss the financial goal of a business. Ensure to provide an example of the inherent ethical challenges associated with the financial goal and or the financial management process. Using the...
Q1. How can companies use social media to do sentiment analysis? Describe the process. Give an example of a company that uses sentiment analysis to enhance relationships with customers. Q2. Describe...
For the following exercises, find the inverse of the functions. f(x)= 3x + 4 5 - 4x
The purpose of this case is to come up with a contingency plan[s] in order to sustain the program Move With Me, a program that serves thousands of community members throughout Lower Manhattan. The...
Standardized Financial Statements What types of information do common-size financial statements reveal about the firm? What is the best use for these common-size statements? What purpose do...
Peer Group Analysis Explain what peer group analysis is. As a financial manager, how could you use the results of peer group analysis to evaluate the performance of your firm? How is a peer group...
Industry-Specific Ratios there are many ways of using standardized financial information beyond those discussed in this chapter. The usual goal is to put firms on an equal footing for comparison...
On NSE (Indian stock exchange), shares of ICICI Bank trade for 935 rupees. If the spot exchange rate is USD 0.012, what is the no-arbitrage USD price of ICICI Bank ADR? Assume that transactions costs...
Income Statement Balance Sheet Balance Sheet Additional Financial Information 1. Market price of Ranfield's common stock: $90.44 at December 31, 2024, and $58.35 at December 31, 2023. 2. Common...
There is a credit rating agency for businesses that gives out various amounts of information based on the subscription level. This company is called a. Business Credit Scoring b. Fair Issue c. Dun...

Rainbow Company has a debt-equity ratio of 1.25. Return on assets is 7.5 percent, and total equity

Question:

Step by Step Answer:

With the information provided we need to calculate the return on equity usi...View the full answer

Essentials Of Corporate Finance

Related Video

Students also viewed these Business questions