lmgarrabrant8818 lmgarrabrant8818
  • 11-09-2020
  • Business
contestada

Jiminy Cricket Removal has a profit margin of 7.6%, total asset turnover of 1.73, and ROE of 17.2%. What is this firm s debt-equity ratio?

Respuesta :

andromache andromache
  • 11-09-2020

Answer:

The debt to equity ratio is 30.81%

Explanation:

The computation of the debt equity ratio is shown below:

ROE = Profit margin × Asset turnover × equity multiplier

17.2% = 7.6% × 1.73 × (1 + debt ÷ equity)

17.2 ÷ 13.148  =  (1 + debt ÷ equity)

1.308184 = (1 + debt ÷ equity)

So, after solving this,

hence, The debt to equity ratio is 30.81%

We simply applied the Dupont analysis and the same is to be considered

Answer Link

Otras preguntas

How important is the study of history
PAKSA : ANG PAGHAHANAP BUHAY NG MGA INA SA TAHANAN ANG SINASABING DAHILAN SA PAGKALIGAW NG LANDAS NG MARAMING ANAK O KABATAAN. SANG AYON / SALUNGAT​
He prepared a mixture of water from two buckets by taking same quantity and observed the thermometer reading of mixture asA. 25° CB. 37.5°CC. 37.5°FD. 50° C​
During a shrinkage limit test, a 19.3 cm3 saturated clay sample with a mass of 37 g was placed in a porcelain dish and dried in the oven. The oven-dried sample
The following events apply to Lewis and Harper, a public accounting firm, for the Year 1 accounting period: Performed $87,000 of services for clients on account
How is wind energy more environmental friendly than heat energy?
[tex]55.89 \div 9[/tex]​
bread is to crust as bacon is to?​
...help plz...........
Conversion To Postfix EXAMPLE: A+(B*C-(D/E-F)*G)*H Stack Input