Business
Financial Management Theory
Selected information is provided for Tiny Bubbles Bath Company: Calculate

Selected information is provided for Tiny Bubbles Bath Company: Calculate ROE from 2013 to 2015 and evaluate

Question:

Selected information is provided for Tiny Bubbles Bath Company:

2014 2015 2013 Sales Assets Net income Total equity $2,600,000 $2,000,000 $ 207,000 $ 800,000 $3,000,000 $2,250,000 $ 22

Calculate ROE from 2013 to 2015 and evaluate whether you think this company's ROE growth is sustainable.

Transcribed Image Text:

2014 2015 2013 Sales Assets Net income Total equity $2,600,000 $2,000,000 $ 207,000 $ 800,000 $3,000,000 $2,250,000 $ 222,000 $ 800,000 $4,000,000 $3,000,000 $ 245,000 $ 860,000

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 100% (5 reviews)

ROE 13 2070002600000 796 2587 26000002000000 130 200...View the full answer

Answered By

Brown Arianne

Detail-oriented professional tutor with a solid 10 years of experience instilling confidence in high school and college students. Dedicated to empowering all students with constructive feedback and practical test-taking strategies. Effective educator and team player whether working in a school, university, or private provider setting. Active listener committed to helping students overcome academic challenges to reach personal goals.

4.60+ 2+ Reviews 10+ Question Solved

Related Book For book-img-for-question

Financial Management Theory And Practice

ISBN: 978-0176583057

3rd Canadian Edition

Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason

See More Books

Question Posted: Jun 11, 2019 12:05 PM

See More Questions

Students also viewed these Business questions

In the table that follows, complete the balance sheet and sales information for J. White Industries using the following financial data: Quick ratio: 0.80X Total assets turnover: 1.5X Days sales...
a. Find the present values of the following cash flow streams. The appropriate interest rate is 14%. b. What is the value of each cash flow stream at a 0% interest rate? Year Cash Stream A Cash...
a. It is now January 1. You plan to make five deposits of $100 each, one every 6 months, with the first payment being made today. If the bank pays a nominal interest rate of 8% but uses semiannual...
The condensed balance sheet and income statement data for Cardinal Corporation are presented below. Additional information: 1. The market price of Cardinal common stock was $5.00, $3.50, and $2.30...
If A is an n n positive definite matrix and U is an n m matrix of rank m, show that UTAU is positive definite.
Use a line integral to find the area of the region R. R: triangle bounded by the graphs of x = 0, 3x - 2y = 0, and x + 2y = 8
11. Is the effect of unrealized profit on consolidated cost of goods sold influenced by (a) the existence of a noncontrolling interest and (b) the direction of intercompany sales?
Professor Wise is teaching a summer seminar in business torts at State University. Several times during the course, he makes copies of relevant sections from business law texts and distributes them...
Question based on modified problems 4 . 3 from the reference text [ Flynn ( 2 0 0 9 ) ] from page 1 3 5 of the textbook: Fill a balance sheet for the company at the end of two years of operation (...
An online retailer is offering a new line of running shoes. The retailer plans to send out an e-mail with a discount offer to some of its existing customers and wants to know if it can use data...
Cayman Auto has $600,000 of debt outstanding, and it pays an interest rate of 8% annually: Cayman Auto's annual sales are $3 million, its average tax rate is 25%, and its net profit margin is 3%. If...
Joshua & White (J&W) Technologies's financial statements are also shown below. Answer the following questions. (Note: Industry average ratios are provided in Ch03 Build a Model.xlsx.) a. Has J&Ws...
Which typically poses a greater challenge in designing and monitoring product qual- ity, the production of a good or provision of a service?
Directions: Put your feet in the shoes of the business owner and suggest specific ways on how a business can gain profit and how it can be avoid loss Ways to Gain Profit 1. 2. 3. 4. 5. 1. 2. 3. 4. 5....
Define business intelligence Briefly discuss how your organisation can use business intelligence to improve decision-making Please see below rubric as guidance. Kindly list references in APA 7th...
Mr Santos apply for college educational plan for his 3 children .The 3 children ages are 6 yrs old , 3 yrs old and 1 yr old. The fund will be set-up the deposit of a fixed sum on the child's current...
Recovery Centers of America needs to acquire new vehicles that will cost $2.5 million across its six state service area. It plans to use the vehicles for three years, at which time new vehicles will...
The following program is supposed to allow the user to enter a list of numbers, then print them out formatted with 2 decimal positions. However, there are 3 errors. Indicate the line number of each...
For the following exercises, use the Rational Zero Theorem to find all real zeros. 4x 4 + 4x 3 25x 2 x + 6 = 0
You are a U.S. investor who purchased British securities for 2,000 one year ago when the British pound cost U.S. $1.50. What is your total return (based on U.S. dollars) if the value of the...
Data Services Corp. just paid a dividend of $2.25 a share (i.e., D0 = $2.25). The dividend is expected to grow 8% a year for the next 3 years, and then 10% a year thereafter. What is the expected...
Greenfield Environmental is expanding rapidly, and it currently needs to retain all of its earnings; hence it does not pay any dividends. However, investors expect Greenfield to begin paying...
Rolen Riders issued preferred stock with a stated dividend of 6% of par. Preferred stock of this type currently yields 7%, and the par value is $25. Assume dividends are paid annually. a. What is the...
Industry Current Year Minus 1 Current Year Minus 2 Company: Air Products and Chemicals, Inc. (APD) Stock Price: 306.72 USD Shares Outstanding: 220.89 M Financial Ratios Most Current Year Current...
Assume the market portfolio of common stocks earned 14.1 percent in one year while U.S. Treasury bills earned 4.4 percent and inflation averaged 4.6 percent. What was the market risk premium?
A bank quotes you an interest rate of 9 . 5 % per annum with quarterly compounding. What is the equivalent rate with continuous compounding?

Statistics For The Social And Behavioral Sciences 1st Edition - ISBN: 0316489158 - Free Book

Study smarter with the SolutionInn App