The Saw Mill has a return on assets of 6.1 percent, a total asset turnover rate of 1.8, and a debt-equity ratio of 1.6. What is the return on equity?
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Quixote Industries currently has $6 million in debt for every $10 million in equity. Assume the firm uses some of its cash to decrease its debt while maintaining its current equity and net income. Which of the following will not change as a result of this action? -equity multiplier and return on assets -total asset turnover and return on equity -return on assets and total asset turnover -profit margin and return on equity -equity multiplier and profit margin
Weston Industries has a debtâequity ratio of 1.6. Its WACC is 8.6 percent, and its cost of debt is 6.1 percent. The corporate tax rate is 35 percent.
What is Westonâs unlevered cost of equity capital?
Calculate and discuss the importance of the following ratios:
Liquidity Ratiosâworking capital, current ratio, quick/acid-test ratio, receivable turnover, average day's sales uncollected, inventory turnover, average day's inventory on hand, operating cycle
Profitability Ratiosâprofit margin, asset turnover, return on assets, debt-to-equity ratio, return on equity
Long-term Solvency Ratiosâdebt-to-equity ratio, debt to total assets, times interest earned, cash debt coverage
Cash Flow Ratiosâcash flow yield, cash flows to sales, cash flows to assets, free cash flow
Market Strength RatiosâEarnings per share, price-earnings per share, payout ratio, book value per share