What was return on equity

Assignment Help Financial Management

Reference no: EM13952114

A fire destroyed a large percentage of the financial records of the Carter Health System. You have the task of piecing together information to prepare a financial report. You have found the profit margin to be 5.4 percent. If sales were $4 million on total assets of $2 million and the amount of debt financing was $800,000, what was Carter's return on equity? (Hint: Use the Du Pont equation to answer this question.)

a. 13.8%

b. 18%

c. 18.3%

d. 19%

Reference no: EM13952114

Questions Cloud

Selling price to outside customers : Division X makes a part that it sells to customers outside of the company. Division Y of the same company would like to use the part manufactured by Division X in one of its products. Division Y currently purchases a similar part made by an outside c..

Identify with any of the characters or situations : Within these responses, you do not need to worry about grammar, spelling, or proper organization of your ideas-the short written response is a place for you to practice writing as a means of discovering what you think, working out your ideas so th..

Which is the ratio of the radii of the planets : The weight of a object is the same on two different planets. The mass of planet A is only sixty percent that of planet B. Find ra/rb, which is the ratio of the radii of the planets.

What is dualism about mind and body what is materialism : What is dualism about mind and body? What is materialism about mind and body?

What was return on equity : A fire destroyed a large percentage of the financial records of the Carter Health System. You have the task of piecing together information to prepare a financial report. You have found the profit margin to be 5.4 percent. If sales were $4 million on..

What is return on assets : Grady Home Health has a profit margin of 15 percent on sales of $20 million. If the firm has debt of $7.5 million and total assets of $22.5 million, what is Grady's return on assets?

What is the piece of a prior knowledge that serves as : What is the piece of a prior knowledge that serves as Descartes' foundation?

Why are ratios used in financial analysis : What is vertical analysis? Why would it be useful to use in financial analysis? What is horizontal analysis? Why would it be useful to use in financial analysis

Find the amount of interest paid over the five years of loan : Assume you take out a $180,000, 30 year mortgage at 3.5%. The loan is fully amortized and payments are monthly. Find the amount of interest paid over the 5 years of the loan(60 months). The loan balance after 60th payment is made

User Account

All Pages