Question
Answer all of these questions with the right question number next to the correct choice. ANSWER ALL OR NONE 1-A firm has retained earnings of
Answer all of these questions with the right question number next to the correct choice. ANSWER ALL OR NONE
1-A firm has retained earnings of $1.25 million at the end of fiscal 2018. During the past year (2019), the firm's net income was $575,000, and it paid dividends to common stockholders of $113,000. What are the firm's retained earnings at the end of fiscal 2019?
A)$562,000
B)$1,712,000
C)$1,938,000
D)$788,000
2-If a firm's profit margin is 9% and its total asset turnover is 1.3x, what is the firm's ROA?
3-ROA is 17.4% and ROE is 29.3%. What is the debt to asset ratio (D/A)? (Answer should be a %).
4-A firm has an ROA of 25% and an ROE of 40%. What is the firm's debt ratio?
A)62.5%
B)0.6%
C)1.6%
D)37.5%
5-A firm has an ROA of 14.7%, 49.1% debt to asset ratio, and a 43.3% dividend payout ratio. What is the maximum rate of growth the firm can support without additional external financing?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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