Question

Calculate the ROE using the DuPont Model for a company with the following data:Profit margin =

16%

Total Asset Turnover = 1.3

Inventory Turnover = 1.1

Equity Multiplier = 1.4

Current Ratio = 0.9

A) 19%

B) 92%

C) 25%

D)29%

E) 16%

Calculate the ROE using the DuPont Model for a company with the following data:
Profit margin = 16%
Total Asset Turnover = 1.3
Inventory Turnover = 1.1
Equity Multiplier = 1.4
Current Ratio = 0.9

A) 19%
B) 92%
C) 25%
D) 29%
E) 16%

Which of the following is TRUE regarding Company ABC given the following information?
Current Assets = $400
Fixed Assets =$120
Current Liabilities = $200
Long term Debt = $75
Sales = $240
Net Income = $50
A) Current Ratio = 3.5
B) Asset turnover=3.5
C) Shareholders’ Equity = $110
D) Debt to equity ratio= 1.08
E) Return on Equity = 20%

What of the following is true about stock buybacks?A) Returns less cash to investors
B) Does not commit company to pay dividends
C) Decrease Stock price
D) Increases equity
E) Tax savings

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