Identity the debt-to-equity ratio-ebit-roa and roa

Assignment Help Financial Management
Reference no: EM131454149

Xtreme Sports Innovations has disclosed the following information: EBIT = $19,840,000 Net income = $6,710,000 Net sales = $82,520,000 Total debt = $21,080,000 Total assets = $78,470,000 Compute the following ratios for this firm using the DuPont identity: debt-to-equity ratio, EBIT ROA, ROA, and ROE. (Round answers to 2 decimal places, e.g.12.55 or 12.55%.) Debt-to-equity ratio EBIT ROA % ROA % ROE %

Reference no: EM131454149

Questions Cloud

Shareholders in the form of new shares of common stock : took proposal to the? firm's board of directors to distribute a noncash dividend to the? firm's shareholders in the form of new shares of common stock
What is heteroscedasticity : Assume that X is random and the leverage (hi) values differ considerably. It is known from analysis of past data that Var(?i) is essentially constant.
Motivate employees to accept foreign assignments : Discuss your reaction to the following statement: "U.S. companies should increase base pay (beyond the level that would be paid in the United States)
Calculator for at least four decimal places of accuracy : You should set your calculator for at least four decimal places of accuracy.
Identity the debt-to-equity ratio-ebit-roa and roa : Compute the following ratios for this firm using the DuPont identity: debt-to-equity ratio, EBIT ROA, ROA, and ROE.
Compute the values of dffits and dfbetas : Compute the values of DFFITS, DFBETAS, and Cook's-D for the 18 data points, and use 2 as the multiplier in the cutoff value for DFFITS.
What are the components of the criminal justice system : What are the components of the criminal justice system? What is the purpose and the responsibilities included in each component
Value particular stock that is expected to pay the dividend : John is looking to value a particular stock that is expected to pay the dividend of $1.80 at the end of each year for at least the next few years.
Describe costs and benefits of residential fire sprinklers : Describe the costs and benefits of residential fire sprinklers, compared to the long-term cost of fire protection for a paid or volunteer fire department.

Reviews

Write a Review

Financial Management Questions & Answers

  Why an mnc may invest funds in a financial market outside

The most popular way for international expansion is for a local firm to acquire foreign companies. Explain why an MNC may invest funds in a financial market outside its own country

  What is the highest price that buyer should consider paying

A company is building a fuel efficient power plant which will generate its first annual cash flow of $18m exactly 4 years from today. As it ages, the volume it produces will remain constant but competing new technologies will drive prices down furthe..

  About the currently producing

Cooling Tools, Inc. is currently producing 1306 of small refrigerators per month but the company’s CEO plans to increase production at a rate of 8.04 percent per month until the firm is producing 7043 of refrigerators per month. How many months will ..

  What is the value of the security if required rate of return

If an equity security has $7.00 earnings per share [EPS] that are expected to remain stable in perpetuity, and expects to maintain a 100% payout ratio to shareholders, what is the value of the security if its required rate of return = 14%?

  Change in the market value of the firm after the exchange

You own all the equity of ABC Co. The company currently has no debt. The company’s annual cash flow is $700,000 before interest and taxes. The corporate tax rate is 35%. You have the option to exchange 1/3of your equity position for 4% coupon bonds w..

  Considering an asset allocation-what is beta of portfolio

You are considering an asset allocation that will consist of 10 percent in the money market account, 40 percent in the Small-Stock Fund, which has a beta of 1.40 and 60 percent in the S&P/TSX index fund, which has a beta of 1.0. What is the beta of y..

  Should the construction company purchase this equipment

A construction company is deciding if they want to purchase some new road improvement equipment The equipment has a first cost of $70,000, it will have annual benefits to the general public of $17,000 per year, and the equipment will be sold for $12,..

  About the depreciation and earnings

Stein Books Inc. sold 2,100 finance textbooks for $230 each to High Tuition University in 2013. These books cost $195 to produce. Stein Books spent $12,500 (selling expense) to convince the university to buy its books.

  What would after-tax cash flow be from equipment sale

Today, Litchfield Design purchased a piece of equipment for 134,000 dollars that will be depreciated to 8,000 dollars over 18 years using straight-line depreciation. What would the after-tax cash flow be from the equipment sale if the equipment is so..

  What is the price of the stock five years from now

O'Leary Corporation's last dividend paid was $1.00. Dividends are expected to grow at a rate of 17% this year, 15% next year, 10% the following year and 5% thereafter. The required rate of return is 15%. What is the price of the stock 5 years from no..

  What is the average tax rate for each household

The state of Indiana charges a retail sales tax of 7%. Consider the following information for three households: Calculate tax liability for each household. What is the average tax rate for each household? What is the marginal tax rate for each househ..

  Mutch uses the perpetual inventory system

On October 1m Mutch Company sold merchadise in the amount of $5,800 to Carr Company, with credit terms of 2/10,n/30. The cost of the items sold is $4,000. Mutch uses the perpetual inventory system. On October 4, Carr returns some of the merchandise. ..

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