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Company's Total Assets Turnover Ratio is 5 and Equity multiplier is 1.5 times which is cal. as Net Sales/Total Assets and Total Assets/ Shareholder's equity resp. for the two ratios.

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βˆ™ 2007-07-31 06:19:04
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Q: If a company has an Return on Assets of 10 percent a 2 percent profit margin and a return on equity equal to 15 percent what is the company's total assets turnover and the equity multiplier?
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A company has an ROA of 10 percent a 2 percent profit margin and a return on equity equal to 15 percent. What is the companys total asset turnover and what is the firm's equity multiplier?

Given: ROA = 10%, Profit margin = 2%, ROE = 15% ROA = Profit margin x Asset Turnover Therefore, Asset Turnover = ROA / Profit margin = 10 / 2 = 5% ROE = Profit margin x Asset Turnover x Equity multiplier 15 = 2 x 5 x Equity Multiplier 15 / 10 = Equity Multiplier Equity Multiplier = 1.05


If a company's return on equity is 10 percent its profit margin is 5 percent and its asset turnover is 1.57 what is it's equity multiplier?

EQUITY MULTIPLIER=Total Assets / Total Stockholders' Equity


How do you solve for equity multiplier with ROA 10 percent profit margin 2 percent and ROE 15 percent?

Equity Multiplier ROA*Equity Multiplier=ROE so, (10%)*(x)=(15%), therefore, Equity Multiplier=15%/10%= 1.5 times Total Asset Turnover Profit Margin*Total Asset Turnover = ROA, so (2%)*(x)=10%, therefore Total Asset Turnover=10%/2%= 5 times


Doublewide Dealers has an ROA of 10 percent a 2 percent profit margin?

Given: ROA = 10%, Profit margin = 2%, ROE = 15% ROA = Profit margin x Asset Turnover Therefore, Asset Turnover = ROA / Profit margin = 10 / 2 = 5% ROE = Profit margin x Asset Turnover x Equity multiplier 15 = 2 x 5 x Equity Multiplier 15 / 10 = Equity Multiplier Equity Multiplier = 1.05


How do you find a multiplier?

For a change of p percent, the multiplier is (1+p/100).


What is 2.700 percent written as a multiplier?

0.027


What is the multiplier for 70 percent and 20 percent off?

0.7 and 0.2


What multiplier do you use to find 18 percent?

0.18


What is the asset turnover ratio if the profit margin is 5 percent and the return on assets is 13.5 percent?

ROA = Net Profit Margin * Asset Turnover Asset Turnover = ROA/Profit Margin = 13.5/5 = 2.7%


What is the percent of turnover if you lose 4 of 249 people?

1.61%


What is the multiplier that will increase an amount by 15 percent?

N x 1.15


Assume that a company has a profit margin of 6.0 an asset turnover of 3.2 times and a debt to equity ratio of 50 percent what is the return on equity?

50%/6%= 8.3%

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