Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. if two firms have the same return on assets, the f

If two firms have the same return on assets, the firm with the greater use...

90.2K

Verified Solution

Question

Accounting

image

If two firms have the same return on assets, the firm with the greater use of debt will have the higher return on equity. A firm has a total debt-to-assets ratio of 0.30. Its equity multiplier is 0.70 0.33 0.77 1.43 None of the above A firm has a net profit margin of 4%, a total asset turnover ratio of 5, and an equity multiplier of 1.20. Its return on equity is 16.7% 24.0% 10.0% 0.24% None of the above The net income of a firm is $1, 200,000. The firm has 100,000 of preferred shares outstanding and 500,000 common shares outstanding. The preferred stock pays a $3 per share dividend. Earnings per share for the firm is $ 3.00 $ 12.00 $ 2.00 $ 1.80 $ 2.40 A firm has net income of $500,000 and sales of $2, 900,000. Its interest expense is $40,000, and the firm's tax rate is 40%. Its operating profit margin is 17.2% 44.5% 41.7% 28.7% 30.1% You read in the stock pages of the WALL STREET JOURNAL that the ABC Company has a price-earnings ratio of 5 and a closing stock price of $20. What are the annual earnings per share for the ABC Company? $1.00 $2.00 $3.00 $4.00 $5.00 The XYZ Company has $100,000 of cash, $200,000 of accounts receivable, $300.000 in inventory, and current liabilities of $200,000. Its quick ratio is 1.0 1.5 2.0 2.5 3.0

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students