Question
1. DuPont Analysis Gardial & Son has an ROA of 10%, a 6% profit margin, and a return on equity equal to 12%. What is
1. DuPont Analysis
Gardial & Son has an ROA of 10%, a 6% profit margin, and a return on equity equal to 12%.
What is the company's total assets turnover? Round your answer to two decimal places.
What is the firm's equity multiplier? Round your answer to two decimal places.
2. Ace Industries has current assets equal to $4 million. The company's current ratio is 2.0, and its quick ratio is 1.5.
What is the firm's level of current liabilities? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000 $
What is the firm's level of inventories? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000
3. Assume you are given the following relationships for the Haslam Corporation:
Sales/total assets | 2.1 |
Return on assets (ROA) | 2% |
Return on equity (ROE) | 5% |
Calculate Haslam's profit margin. Do not round intermediate calculations. Round your answer to two decimal places. %
Calculate Haslam's liabilities-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places. %
Suppose half of Haslam's liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places.
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