Keller Cosmetics maintains an operating profit margin of 8.15% and a sales-to-assets ratio of 3.20. It has assets of $530,000 and equity of $330,000. Assume that interest payments are $33,000 and the tax rate is 30%. a. What is the return on assets? b. What is the return on equity? Note: For all requirement, enter your answers as a percent rounded to 2 decimal places. a. Return on assets b. Return on equity % %

Keller Cosmetics maintains an operating profit margin of 8.15% and a sales-to-assets ratio of 3.20. It has assets of $530,000 and equity of $330,000. Assume that interest payments are $33,000 and the tax rate is 30%. a. What is the return on assets? b. What is the return on equity? Note: For all requirement, enter your answers as a percent rounded to 2 decimal places. a. Return on assets b. Return on equity % %

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Required: Compute the following: (For Requirements 1 to 4, enter your percentage answers rounded to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) 1. Gross margin percentage. 2. Net profit margin percentage. 3. Return on total assets. 4. Return on equity. 5. Was financial leverage positive or negative for the year? 1. Gross margin percentage % 2. Net profit margin percentage % 3. Return on total assets % 4. Return on equity % 5. Financial Leverage
For the year ended December 31, 2022, Settles Incorporated earned an ROI of 8.8 %. Sales for the year were $9 million, and average asset turnover was 2.2. Average stockholders' equity was $2.9 million. Required: a. Calculate Settles Incorporated's margin and net income. Note: Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000. b. Calculate Settles Incorporated's return on equity. Note: Round your answer to 1 decimal place. a. Margin a. Net income % b. Return on equity %
Ladders, Inc. has a net profit margin of 5.2% on sales of $50.6 million. It has book value of equity of $38.1 million and total book liabilities of $30.9 million. What is Ladders' ROE? ROA? Note: Assume the value of Interest Expense is equal to zero. What is Ladders' ROE? Ladders' ROE is enter your response here %. (Round to two decimal places.) Part 2 What is Ladders' ROA? Ladders' ROA is enter your response here %. (Round to two decimal places.)
Cash Company has income from operations of $51,520, invested assets of $230,000, and sales of $644,000. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin fill in the blank % b. Investment turnover fill in the blank c. Return on investment fill in the blank %
(This is what is in between the 1st and 2nd screenshot) Using these data, determine the following: Earnings per share. Round your answer to two decimal places. Price-to-earnings ratio. Round your answer to two decimal places. Book value per share. Round your answer to two decimal places. Market-to-book ratio. Round your answer to two decimal places. EV-EBITDA multiple. Assume the cost of sales includes $14 million in depreciation expenses. Assume there are no amortization expenses. Round your answer to two decimal places. How much of the retained earnings total was added during Year 1? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to two decimal places.$ million Show Eastland’s new balance sheet after the company sells 1 million new common shares in early Year 2 to net $28 a share. Part of the proceeds, $12 million, is used to reduce current liabilities, and the remainder is temporarily…
1.If Gwen, Inc. has a total debt ratio of 0.8, a total asset turnover of 0.33, and a net profit margin of 10%. Calculate the return on equity (ROE). Enter percentages as decimals and round to 4 decimals.
Spelman Corporation has Sales of $36,800, Depreciation Expense of $3,000, Interest Expense of $2,000, Cost of Goods Sold of $15,000, other costs of $7,800, and an average tax rate of 34 percent. What is the firm's profit margin? Please record your answer using the following format (12.54). Record your answer to two decimal places. While the answer should be given as a percentage, do NOT place a "%" directly after the number. Do not type the parentheses: just type the number!
The Lancaster Corporation's income statement is given below. Sales Cost of goods sold Gross profit Fixed charges (other than interest) Income before interest and taxes Interest Income before taxes Taxes (35%) Income after taxes LANCASTER CORPORATION a. What is the times-interest-earned ratio? Note: Round your answer to 2 decimal places. Times interest earned Fixed charge coverage times b. What would be the fixed-charge-coverage ratio? Note: Round your answer to 2 decimal places. times $ 223,000 155,000 $ 68,000 33,100 $ 34,900 13,400 $ 21,500 7,525 $ 13,975
The Lancaster Corporation's income statement is given below. Sales Cost of goods sold Gross profit Fixed charges (other than interest) Income before interest and taxes LANCASTER CORPORATION Interest Income before taxes Taxes (35%) Income after taxes a. What is the times-interest-earned ratio? Note: Round your answer to 2 decimal places. Times interest earned Fixed charge coverage times b. What would be the fixed-charge-coverage ratio? Note: Round your answer to 2 decimal places. times $ 234,000 175,000 $ 59,000 33,000 $ 26,000 17,300 $ 8,700 3,045 $ 5,655
Briggs Company has operating income of $45,760, invested assets of $143,000, and sales of $457,600. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin % b. Investment turnover c. Return on investment %
Assuming Sunny-D Cafe has a tax rate of 30 percent, calculate sales for the firm given the following financial information: net income of $37,900; interest expense of $11,500; depreciation expense of $14,200; and costs of $80,900. Points: 1 A. $144,500 B. $154,143 C. $160,743 D. $165,114 E. Remember to breathe
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