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You have the following data about a company: : $ 4 5 0 , 0 0 0 Sales : 3 0 0 , 0 0
You have the following data about a company:
: $
Sales
:
Total assets
Net income
:
Accounts payable and Accrued expenses
: not known
Interestbearing debt
: not known
Stockholders' equity
Your analyst has presented you with the following ratios:
Return on Equity ROE
:
Return on Assets ROA
:
Profit margin
:
Asset turnover
: not known
Equity multiplier
: not known
Required:
A
i Identify the ROE drivers according to the DuPont equation
marks
ii Write the extended DuPont equation
marks
B Calculate the following:
i Asset turnover
marks
ii Equity multiplier
marks
iii Debtequity ratio
marks
iv Liabilitiestoequity ratio Total liabilities Stockholders' equity
marks
C If all of the company's assets are operating assets, what are the company's net operating assets NOA
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