What is the return on equity

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Question 1: The Jamestown Group has equity of $421,000, sales of $792,000, and a profit margin of 6 percent. What is the return on equity?

  • 8.87 percent
  • 6.19 percent
  • 11.29 percent
  • 10.27 percent
  • 9.37 ercent

Question 2: ABC Corporation has the following ratios: Total Asset Turnover= 1.6 Total debt to total assets= 0.5 Current Ratio= 1.7 Current Liabilities= $2,000,000 Sales = $16,000,000 What is the amount of current assets?

  • 2,000,000
  • 3,200,000
  • 3,400,000
  • 1,000,000

Question 3: ABC's balance sheet indicates a book value of shareholders' equity of $897,703. The firm's earning per share are $2.9 and the price-earnings ratio is 11.96. If there are 52,701 shares outstanding, what is the market-to-book ratio?
Enter your answer rounded off to two decimal points.

Hint: Market value per share is same as market price per share

Question 4:  If the debt ratio is 0.20, the Equity Multiplier is:

  • 1.25
  • 0.25
  • 1.20
  • 0.20
  • 0.80
  • 1.5

Reference no: EM13762865

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