Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A firm has the following financial data: Sales: $850,000 Net Income: $150,000 Assets: $900,000 Liabilities: $400,000 Equity: $500,000 Calculate the following ratios: Return on Equity

image text in transcribed
A firm has the following financial data: Sales: $850,000 Net Income: $150,000 Assets: $900,000 Liabilities: $400,000 Equity: $500,000 Calculate the following ratios: Return on Equity (ROE). Net Profit Margin (NPM). Total Asset Turnover (TAT), and the Equity Multiplier (EM). ROE = 38% NPM = 18% TAT = 2.13 EM = 2.25 ROE = 38% NPM = 18% TAT = 2.13 EM = 1.8 ROE = 38% NPM = 18% TAT=.94 EM = 1.8 O ROE -30% NPM = 18% TAT = .94 EM 1.8

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Financial Planning

Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk

14th edition

978-1305887725, 1305887727, 1305636619, 978-1305636613

More Books

Students also viewed these Finance questions