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Williams, Inc. has a debt ratio of 40%, return on assets (ROA) of 20% and a net profit margin of 5%. 1.Compute Return on Equity

Williams, Inc. has a debt ratio of 40%, return on assets (ROA) of 20% and a net profit margin of 5%.

1.Compute Return on Equity (ROE) for Williams

(as a percent rounded to 1 decimal place)

2.Compute the total asset turnover ratio for Williams

(as a value rounded to 1 decimal place)

3.You are given the following information for a certain company:

Return on Equity 50%

Return on Assets 30%

Net Profit Margin 8%

Determine the company's Debt Ratio

(as a percent rounded to 1 decimal place)

.

4.If the ABC company has a current ratio of 1.5 times. Its quick ratio is 1. If current assets are $3 million, what is the dollar value of inventory

(as a dollar amount rounded to zero decimal places)?

5.Assume that your firm has ROA of 18%, ROE of 32% and Total Asset Turnover ratio of 4.0. Calculate the debt ratio for the firm (as a percent rounded to 1 decimal place)

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