Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. A firm has Sales of $3,000,000, Earnings Before Taxes (EBT) of 15% of revenues, taxes of 21%, total assets of $1,500,000, and a debt-to-equity

1. A firm has Sales of $3,000,000, Earnings Before Taxes (EBT) of 15% of revenues, taxes of 21%, total assets of $1,500,000, and a debt-to-equity ratio of 0.5. What is the return on assets?

2. A firm has Sales of $3,000,000, Earnings Before Taxes (EBT) of 15% of revenues, taxes of 21%, total assets of $1,500,000, and a debt-to-equity ratio of 0.5. What is the return on equity?

3. A firm has Sales of $3,000,000, Earnings Before Taxes (EBT) of 15% of revenues, taxes of 21%, total assets of $1,500,000, and a debt-to-equity ratio of 0.5. What is the DuPont Identity (Profit Margin * Total Asset Turnover * Equity Multiplier)?

4. A firm has cash of $120 million, fixed assets worth $450 million, inventory worth $180 million, accounts receivable of $100 million, accounts payable and notes payable of $300 million, and long-term debt of $400 million. What is the firm's quick ratio?

5. A firm has cash of $120 million, fixed assets worth $450 million, inventory worth $180 million, accounts receivable of $100 million, accounts payable and notes payable of $300 million, and long-term debt of $400 million. What is the firm's debt-to-equity ratio?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cases in Finance

Authors: Jim DeMello

3rd edition

1259330476, 1259330478, 9781259352652 , 978-1259330476

More Books

Students also viewed these Finance questions