Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following problems are independent and unrelated. (1) Company A's Debt-Equity Ratio is 0.65. Return on assets (ROA) is 8.5% and total equity is $54,000.
The following problems are independent and unrelated. (1) Company A's Debt-Equity Ratio is 0.65. Return on assets (ROA) is 8.5% and total equity is $54,000. What is the company's equity multiplier? What is the Return on Equity (ROE)? (2) Company A's sales are $29,000, total assets are $17,500, and total liabilities are $6,300. If the profit margin on sales is 8%, what is the net profit? ROA? ROE? (3) The net fixed assets of Company A increased by $835 in the fiscal year that just ended. The company depreciated $148 over the year. What was the company's net payment for the purchase of new fixed assets? Is it a source or use of cash flows? (4) The following is information about A Co., Ltd. Sales = $195,000, Net Income = $17,500, Dividends = $9,300, Total Liabilities = $86,000, Total Equity = $58,000 What is the sustainable growth rate of Company A? Also, what is the growth rate that can be achieved without external funding?
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