Debt-to-total-assets ratio

Assignment Help Finance Basics
Reference no: EM132235114

Using the DuPont method, evaluate the effects of the following relationships for the Lollar Corporation.

a. Lollar Corporation has a profit margin of 4.5 percent and its ROA (investment) is 10.00 percent. What is its asset turnover? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Asset turnover ratio: x

b. If Lollar Corporation has a debt-to-total-assets ratio of 55 percent, what would the firm's ROE be? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Return on equity: %

c. What would be the ROE, if the debt-to-total-assets ratio decreased to 50 percent? (Do not round intermediate calculations. Roundthe final answer to 2 decimal places.)

Return on equity: %

Reference no: EM132235114

Questions Cloud

Construct a full pro-forma statement : a) Construct a full pro-forma statement for this project's projected incremental cash flows.
What is the present value of his consulting contract : If Mr. Takabayashi's opportunity cost (potential return) is 10 percent, what is the present value of his consulting contract?
Firm cash flow to creditors during 2018 : The 2018 income statement showed an interest expense of $380,000. What was the firm's cash flow to creditors during 2018?
What was the cash flow to stockholders for the year : If the company paid out $640,000 in cash dividends during 2018, what was the cash flow to stockholders for the year?
Debt-to-total-assets ratio : What would be the ROE, if the debt-to-total-assets ratio decreased to 50 percent?
How the organization applies the lessons learned in course : Detailed analysis on how the organization applies the lessons learned in the course, including the following concepts (select those that are applicable).
Debt-to-total-assets ratio : If the debt-to-total-assets ratio is 25 percent, what is the ROE? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
Calculate the irr of a bond : If you are using IRR as an evaluation technique and a company has bond assets, then using bond yield is a way that you can essentially calculate the IRR
Quality management-lean and benchmarking differ : How do the process improvement approaches of cost cutting, quality management, lean, and benchmarking differ?

Reviews

Write a Review

Finance Basics Questions & Answers

  What are the payments for the interest-only loan

Mark Sexton and Todd Story, the owners of S&S Air, Inc., were impressed by the work Chris had done on financial planning. Using Chris's analysis, and looking.

  Expected return to the nearest whole percentage

If the probability of a 20% return is 0.7 and the probability of a 4% loss is 0.3, what is the expected return to the nearest whole percentage?

  Discuss the impact of exchange rate fluctuations on a firm

Goldman, Sachs, and Co.: Nikkei Put Warrants-1989 (Harvard Business School Case 292113-PDF-ENG). The case illustrates how investment banks can design.

  Investments and exchange rate

Suppose 90-day investments in Britain have a 6% annualized return and a 1.5% quarterly (90-day) return. In the U.S., 90-day investments of similar risk have a 4% annualized return and a 1% quarterly (90-day) return.

  Assess the value of the firm stock

Imprudential, Inc., has an unfunded pension liability of $753 million that must be paid in 15 years. To assess the value of the firm's stock, financial analysts

  Practice problems financial statement analysis

What was the capital spending for LMC in 20Y5? Practice Problems Financial Statement Analysis.

  Calculate the exercise price of the put option

You bought a put option with a strike price of $45 on Fox stocks that are currently selling at $55 a share. The put option is trading at $4

  What is the present value of his consulting contract

Les Moore retired as president of XYZ Company but is currently on a consulting contract for $55,000 per year for the next 10 years. If Mr. Moore's opportunity cost (potential return) is 10 percent, what is the present value of his consulting contr..

  What is the amount of each loan payment

You are buying a previously owned car today at a price of $3,500. You are paying $300 down in cash and financing the balance for 36 months at 8.5 percent. What is the amount of each loan payment?

  An essay from a legal and ethical point of view moral

you believe that your male boss is overly friendly with a female member of your staff and that she is taking advantage

  Computing the platinum & steel products''s return on equity

Compute the platinum & Steel Products's return on equity.

  You are a manager in a fictitious company of your choice

you are a manager in a fictitious company of your choice. your director has asked you to explain to the department

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