Answered step by step
Verified Expert Solution
Question
1 Approved Answer
22. Keller Cosmetics maintains an operating profit margin of 5% and asset turnover r 3. If its debt-equity ratio is 1, its interest payments and
22. Keller Cosmetics maintains an operating profit margin of 5% and asset turnover r 3. If its debt-equity ratio is 1, its interest payments and taxes are each $8,000, and is $20,000, what is its ROE? (Round your answer to 2 decimal places.) A. 15.00% B. 18.07% C. 9.04% D. 15.21% 23. Suppose Home Depot's Stock price falls by 10% in a given year. Will the firm mari value added increase or decrease? How will this change affect your assessment of th performance of the firm's management? A. Decrease; Will downgrade your evaluation of the success of firm management. B. Increase; Will upgrade your evaluation of the success of firm management C Decrease, Will upgrade your evaluation of the success of firm management. D. Increase, Will downgrade your evaluation of the success of firm management. 24. Last year Electric Autos had sales of $100 million and assets at the start of the year of $150 million. If its retum on start-of-year assets was 15%, what was its operating prof margin? (Round your answer to 2 decimal places. Hint: Du Pont Analysis) A. 10.00% B. 22.50% C. 25.00% D. 15.50% 25. Consider this simplified balance sheet for Geomorph Trading: What is the current ratio? A. 0.6 B. 2.16 C. 1.67 D. 0.4 26. Which one of the following arguments is NOT correct? *** 200
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started