FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

please show how to solve If a firm produces a return on assets of 15 percent and also a return on equity of 15 percent,

please show how to solve

If a firm produces a return on assets of 15 percent and also a return on equity of 15 percent, then the firm:

has no debt of any kind. has an equity multiplier of 2. has no net working capital. also has a current ratio of 15. is using its assets as efficiently as possible.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

College Accounting Chapters 1-30

College Accounting Chapters 1-30

Authors: John Price, M. David Haddock, Michael Farina

15th edition

1259994975, 125999497X, 1259631117, 978-1259631115

Students also viewed these Finance questions

Question

★★★★★
On January 1, 2011, Salvatore Company leased several machines from Nola Corporation under a 3-year operating lease agreement. The lease calls for semiannual payments of $15,000 each, payable on June...

Answered: 1 week ago

Question

★★★★★
=+a) How much change do you have?

Answered: 1 week ago

Question

★★★★★
Discuss the role of motivation in financial literacy.

Answered: 1 week ago

Question

★★★★★
Premier Printing, Inc., has not been profitable despite increases in sales. It has hired you to learn why. You turn to the accounting system for data and find it to be a mess. However, you piece...

Answered: 1 week ago

Question

★★★★★
OwenInc has a current stock price of $13.10 and is expected to pay a $0.70 dividend in one year. If OwenInc's equity cost of capital is 12%, what price would OwenInc's stock be expected to sell for...

Answered: 1 week ago

Question

★★★★★
Identify the stage of change the client is in and write in behavioral language at least one problem, with at least one goal and a minimum of two objectives for each goal for the client vignettes...

Answered: 1 week ago

Question

★★★★★
On January 15, the end of the first pay period of the year, North Companys employees earned $26,000 of sales salaries. Withholdings from the employees salaries include FICA Social Security taxes at...

Answered: 1 week ago

Question

★★★★★
The following cost behavior pattern describes anticipated manufacturing overhead costs for 2019: $297,500+ $9.0/unit. During the year, 35,000 units were produced and 32,750 units were sold. Required:...

Answered: 1 week ago

Question

★★★★★
Blue Spruce Valley Limited produces wine. Certain vintage wines take more than one year to age. The company has borrowed funds to cover the costs of this aging process. The company meets the interest...

Answered: 1 week ago

Question

★★★★★
Waterways Corporation is preparing its budget for the coming year, 2022. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in...

Answered: 1 week ago

Question

★★★★★
Question 10 of 13 You noticed that a fast food restaurant's operating cycle is 30 days. Would this suggest the restaurant is selling food beyond its expiration date? Select an answer: No, because the...

Answered: 1 week ago

Question

★★★★★
On 31 December 20X0 the inventory of V was completely destroyed by fire. The following information is available: Inventory at 1 December 20X0 at cost GHS28,400. Purchases for December 20X0 GHS49,600....

Answered: 1 week ago

Question

★★★★★
kindly solve the attached. Sandpiper Company has 15,000 shares of cumulative preferred 1% stock, $50 par and 50,000 shares of $15 par common stock. The following amounts were distributed as...

Answered: 1 week ago

Question

★★★★★
Is It ethical for companies to decline to sell a useful drug like ranolazine in a poor country because they can make more money marketing tt elsewhere?

Answered: 1 week ago

Question

★★★★★
Do drug companies have an obligation to make new drugs available to patients who were involved in their development, either here or overseas? Does the size of the company make a difference? What...

Answered: 1 week ago

Question

★★★★★
Are the large drug companies guilty of price gouging or of charging an unfair or exploitative price for their products? Should Americans be permitted to import drugs from Canada or other countries?

Answered: 1 week ago

Previous Question Next Question