Question
1. Given the following information for the Duke Tire Company, find the firm's debt ratio (i.e., total liabilities / total assets): ROE (N/E) = 0.33
1.
Given the following information for the Duke Tire Company, find the firm's debt ratio (i.e., total liabilities / total assets):
ROE (N/E) = 0.33 (expressed as a decimal) Total asset turnover ratio (S/A) = 2.2 Net profit margin (N/S) = 0.07 (expressed as a decimal)
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2.
Given the following information for the Duke Tire Company, find ROA (Return on Assets):
Debt ratio (D/A) = 0.21 (expressed as a decimal) Total asset turnover ratio (S/A) = 1.25 Sales (S) = $10,000 Net profit margin = 0.08 (expressed as a decimal)
3.
if a firm has a debt ratio (i.e., D/A) of 50%, what is the firm's debt to equity (i.e., D/E) ratio?
4. If ROA (return on assets) = 7% and if ROE (return on equity) = 42%, what is the firm's equity multiplier (i.e., Total assets/Equity).
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