Question
1. XYZ SA had a 20% return on equity. 6% net profit margin and 1 debt equity ratio. What is XYZ return on assets? Show
1. XYZ SA had a 20% return on equity. 6% net profit margin and 1 debt equity ratio. What is XYZ return on assets? Show your work!
2. Company ABC has 680 billion assets and 42.5 million net income on 850 billion sales. If their ROE is 20%, what is ABC's total debt?
3. Company XYZ has an ROE of 15%, a net margin of 6%, and an asset turnover of 1.75. What is the XYZ corporate debt (debt/asset) ratio?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
1 To calculate XYZs return on assets ROA we can use the DuPont model formula ROA ROE x Asset turnove...
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
