Determined that its return on equity-what is profit margin

Assignment Help Financial Management
Reference no: EM131015980

The Merriam Company has determined that its return on equity is 13.86 percent. Management is interested in the various components that went into this calculation. You are given the following information: total debt/total assets = 0.41 and total assets turnover = 2.17. What is the profit margin?

Reference no: EM131015980

Questions Cloud

What is the change in price the bond will experience : A 6.15 percent coupon bond with fifteen years left to maturity is priced to offer a 7.3 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.0 percent. What is the change in price the bond will experience in dollar..
Call option has exercise price equal to current stock price : Draw a diagram showing the variation of an investor’s profit and loss with the terminal stock price for a portfolio consisting of: In each case, assume that the call option has an exercise price equal to the current stock price
Suppose risk-free rate of return : Suppose risk-free rate of return = 3%, market return = 9%, and Stock B’s return = 12%. Calculate Stock B’s beta. If Stock B’s betas were 0.80, what would be its new rate of return?
External finance is channeled through intermediaries : Which of the following explains why most external finance is channeled through intermediaries? Select one: a. Transaction Costs b. Asymmetric Information c. Free-rider problem d. All of the above
Determined that its return on equity-what is profit margin : The Merriam Company has determined that its return on equity is 13.86 percent. Management is interested in the various components that went into this calculation. You are given the following information: total debt/total assets = 0.41 and total asset..
The firm has no long-term debt : Harvey Supplies Inc. has a current ratio of 3.02, a quick ratio of 0.99, and an inventory turnover ratio of 9.7. Harvey's total assets are $6,060,591 million and its debt ratio is 0.22. The firm has no long-term debt. What is Harvey's sales figure?
What is the actual effective annual rate : If you have a credit card with a stated interest rate of 16% Annual Percentage Rate (APR), what is the actual Effective Annual Rate (EAR) if they use daily compounding (assuming 365 days/year)? What is the limit if they use continuous compounding?
Finance be good tool to set direction when managing people : Can finance be a good tool to set direction when managing people? Can it be used to communicate vision (a desired future state of something) better? Can finance be used to manage outcomes (of projects/initiaitves) more effectively in a company?
What is the internal growth rate : Last year, Lakesha’s Lounge Furniture Corporation had an ROA of 7.4 percent and a dividend payout ratio of 26 percent. What is the internal growth rate? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reviews

Write a Review

 

Financial Management Questions & Answers

  Why do that pimlico ltd established the subsidiary in china

Why do you think that Pimlico Ltd established the subsidiary in China instead of Japan? Assume no major country risk barriers.

  What are the proceeds of the issue for each company

Company XYZ enters into firm commitment underwriting agreement with Company ABC to issue 4200 of bonds with a 1,000 face value. Company ABC agrees to buy the bonds for $620 each and sells 84% of the issue in the market for $831 per bond. What are the..

  What capital outlays are planned for the coming year

If all capital outlays are funded from retained earnings and new borrowings and if Clynne follows a residual dividend policy, what capital outlays are planned for the coming year?

  Agreement included a clause excusing safe storage

Sarah entered into a written contract with Safe Storage, Inc. The agreement included a clause excusing Safe Storage, Inc. from any liability for loss or damage, even if the loss or damage resulted from Safe Storage's negligent acts. Sarah signed the ..

  What would be his tax bill if he makes the contribution

Assume that Reginald Worthington, who pays 40 percent in income taxes, plans to contribute $100,000 to not-for-profit Ravenswood Community Hospital. Without the contribution, his tax bill would be $500,000. What would be his tax bill if he makes the ..

  Calculate the average daily balance and finance charge

Calculate the average daily balance and finance charge.

  Calculate book-market values of firms stockholders equity

Ava’s SpinBall Corp. lists fixed assets of $16 million on its balance sheet. The firm’s fixed assets have recently been appraised at $24 million. Ava’s SpinBall Corp.’s balance sheet also lists current assets at $9 million. Calculate the book and mar..

  Purposes of the international monetary fund

A recommended technique to ensure the accuracy of translation a company’s documents into other languages. Which of the following countries had the highest per capita GDP (ppp)?  There are five identifiable stages in the evolution of marketing across ..

  Impact of income taxes

Ben Rakusin is contemplating an expansion of his business. He believes he can increase revenues by $9,000 each month if he leases 1,500 additional square feet of showroom space. Rakusin has found the perfect showroom. It leases for $4,000 per month. ..

  The current exchange rate between french franc and us dollar

The current exchange rate between French franc and US dollar is FF 5.529 per dollar. Last month this rate was FF 5.491 per dollar. a) FF has appreciated b) US $ has depreciation c) FF has depreciated d) US $ has appreciated

  Nominal annual percentage cost of its non-free trade credit

A firm buys on terms of 3/15, net 45. It does not take the discount, and it generally pays after 60 days. What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year? (Please show all work and formulas)

  What is the proportion invested in each of two risky funds

What is the standard deviation of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Standard deviation. What is the proportion invested in the T-bill fund? (Do not round intermediate calculations. Round ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd