What would the return-on-equity ratio be

Assignment Help Financial Management

Reference no: EM131564211

Gates Appliances has a return-on-assets (investment) ratio of 20 percent.

a. If the debt-to-total-assets ratio is 25 percent, what is the return on equity? (Input your answer as a percent rounded to 2 decimal places.)

b. If the firm had no debt, what would the return-on-equity ratio be? (Input your answer as a percent rounded to 2 decimal places.)

Reference no: EM131564211

Questions Cloud

International financial crises are generally caused : International financial crises are generally caused by. Which event is NOT usually associated with a financial? crisis?

Assume that the company pays no dividends : Assume that the company pays no dividends. Under these assumptions, what would be the additional funds needed for the coming year?

Explain the expected return-beta relationship : Derive algebraically and explain the Expected Return-Beta relationship.

Calculate the daily value at risk : calculate the daily value at risk for the 95% (z-score 1.645) and 99% (z-score 2.326) confidence level.

What would the return-on-equity ratio be : If the debt-to-total-assets ratio is 25 percent, what is the return on equity? what would the return-on-equity ratio be?

The absence of market imperfections and tax effects : In absence of market imperfections and tax effects, we would expect the share price to decline by amount of dividend payment when stock goes ex dividend.

Implement a fibonacci function : In this programming assignment, you will implement a Fibonacci function that avoids repetitive computation by computing the sequence linearly

The person can be part of the marymount community : The person can be part of the Marymount community, or not affiliated with Marymount

One alternative is to invest the cash in financial assets : NBM has two choices to make use of this cash. One alternative is to invest the cash in financial assets.

User Account

All Pages