Question
1. XYZ SA has been a return on equity of 20%. A net profit margin of 6% and debt to equity ratio of 1. What
1. XYZ SA has been a return on equity of 20%. A net profit margin of 6% and debt to equity ratio of 1. What is XYZ return on assets? Show your work!
a. 5.0%
b. 10.0%
c. 15.0%
d. 20.5%
2. ABC company has assets of 680 billion and net income of 42.5 million on sales of 850 billion. If their ROE was 20%, how much does ABC have in total debt?
A. 136.0 billion
B. 170.0 billion
C. 212.0 billion
D. 467.5 billion
3. XYZ company has an ROE of 15%, a net profit margin of 6%and an asset turnover of 1.75. What is XYZ companydebt (debt/asset) ratio?
A. 1.43%
B. 30,00%
C. 43,00%
D. 50,00%
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