CH3BHW Please use the following financial statements for questions 1 and 2 : 3. ABC Corp.'s equity mulaiplier is 1.25. What is its debt ratio? 1. Please calculate Starbacks" Debt Ratio for each year. Do we want this ratio higher or lower? Did the conpany's perfonmance improve or decline over that poriod? 4. Easy Comp's return on assets measare is 020 (20sk fis return on equity measure is 0.25 (25\%). What is the firm's equaty anultiplier? 2. Please compare Starbucks "debt matio in 2007 to the industry average which is given below for each measure. Was Starbucks doing better comapared to the industry? 5. Decorative Paintings has fotal debt of $99,000, fotal equity of $445,000, and a return on equity of 10 percent. What is the return on assets? 6. If equity multiplier for a finm is 4 , what is the debt natio for that firm? 7 measures the percentage of each sales dollar remaining afer all costs and expenses, including interest, taxes, and preferred stock dividends, have been deducted. A) Net profit margin 10) The DuPont formula allows a firm to break down is return into the ne! B) Operating profit margin C) Gross profit margin profit margin, which measures the firm's profitability on sales, and its toal D) Earnings available to common shareholders generate sales. TRUE EAISE 8. measures the return earned on the common stockholders' investment in the firm. A) Net profit margin B) Pricelearnings ratio C) Return on equity D) Return on total assets 9. A firm with sales of $1,000,000, net profits after taxes of $30,000, total assets of $1,500,000, and common stockholders' investment of $750,000 has a return on equity of A) 20 percent B) 15 percent C) 3 percent D) 4 percent infess zounced to editits saler to stay in Protrcted View. See what's CH3B HW Please use the following financial statements for auestions 1 and 0 . 1. Please calculate Starbucks' Deby Ratio for each year. Do we want this ratio higher or lower? Did the company's performance improve or decline over that period? 2. Please compare Starbuclis' debt ratio in 2007 to the industry average which is given below for each meanure. Was Starbucks doing better compared to the industry? 3. ABC Corp.'s equity multiplier is 1.25. What is its debt ratio? 4. Easy Corp. 's retum on assets measure is 0.20 (20\%. Its return on equity measure is 0.25 (25\%). What is the firm's equity multiplier? 5. Decorative Paintings has total debt of $69,000, total equity of $445,000, and a return on equity of 10 percent. What is the retum on assets? 6. If equity multiplier for a firm is 4 , what is the debt ratio for that firm? 7. measures the percentage of each sales dollar remaining after all costs and expenses, including interest, taxes, and preferred stock dividends, have been deducted. A) Net profit margin B) Operating profit margin C) Gross profit margin D) Earnings available to common shareholders 8. measures the return earned on the common stockholders' investment in the firm. A) Net profit margin B) Price/ eamings ratio C) Return on equity D) Return on total assets 9. A firm with sales of $1,000,000, net profits after taxes of $30,000, total assets of $1,500,000, and common stockholders' investment of $750,000 has a return on equity of A) 20 percent B) 15 percent C) 3 percent D) 4 percent D) 4 percent 10) The DuPont formula allows a firm to break down its return into the net profit margin, which measures the firm's profitability on sales, and its total asset turnover, which indicates how efficiently the firm has used its assets to generate sales. TRUE FALSE CH3BHW Please use the following financial statements for questions 1 and 2 : 3. ABC Corp.'s equity mulaiplier is 1.25. What is its debt ratio? 1. Please calculate Starbacks" Debt Ratio for each year. Do we want this ratio higher or lower? Did the conpany's perfonmance improve or decline over that poriod? 4. Easy Comp's return on assets measare is 020 (20sk fis return on equity measure is 0.25 (25\%). What is the firm's equaty anultiplier? 2. Please compare Starbucks "debt matio in 2007 to the industry average which is given below for each measure. Was Starbucks doing better comapared to the industry? 5. Decorative Paintings has fotal debt of $99,000, fotal equity of $445,000, and a return on equity of 10 percent. What is the return on assets? 6. If equity multiplier for a finm is 4 , what is the debt natio for that firm? 7 measures the percentage of each sales dollar remaining afer all costs and expenses, including interest, taxes, and preferred stock dividends, have been deducted. A) Net profit margin 10) The DuPont formula allows a firm to break down is return into the ne! B) Operating profit margin C) Gross profit margin profit margin, which measures the firm's profitability on sales, and its toal D) Earnings available to common shareholders generate sales. TRUE EAISE 8. measures the return earned on the common stockholders' investment in the firm. A) Net profit margin B) Pricelearnings ratio C) Return on equity D) Return on total assets 9. A firm with sales of $1,000,000, net profits after taxes of $30,000, total assets of $1,500,000, and common stockholders' investment of $750,000 has a return on equity of A) 20 percent B) 15 percent C) 3 percent D) 4 percent infess zounced to editits saler to stay in Protrcted View. See what's CH3B HW Please use the following financial statements for auestions 1 and 0 . 1. Please calculate Starbucks' Deby Ratio for each year. Do we want this ratio higher or lower? Did the company's performance improve or decline over that period? 2. Please compare Starbuclis' debt ratio in 2007 to the industry average which is given below for each meanure. Was Starbucks doing better compared to the industry? 3. ABC Corp.'s equity multiplier is 1.25. What is its debt ratio? 4. Easy Corp. 's retum on assets measure is 0.20 (20\%. Its return on equity measure is 0.25 (25\%). What is the firm's equity multiplier? 5. Decorative Paintings has total debt of $69,000, total equity of $445,000, and a return on equity of 10 percent. What is the retum on assets? 6. If equity multiplier for a firm is 4 , what is the debt ratio for that firm? 7. measures the percentage of each sales dollar remaining after all costs and expenses, including interest, taxes, and preferred stock dividends, have been deducted. A) Net profit margin B) Operating profit margin C) Gross profit margin D) Earnings available to common shareholders 8. measures the return earned on the common stockholders' investment in the firm. A) Net profit margin B) Price/ eamings ratio C) Return on equity D) Return on total assets 9. A firm with sales of $1,000,000, net profits after taxes of $30,000, total assets of $1,500,000, and common stockholders' investment of $750,000 has a return on equity of A) 20 percent B) 15 percent C) 3 percent D) 4 percent D) 4 percent 10) The DuPont formula allows a firm to break down its return into the net profit margin, which measures the firm's profitability on sales, and its total asset turnover, which indicates how efficiently the firm has used its assets to generate sales. TRUE FALSE