Combination of long- term debt and common equity


I want assistance with the given questions

Question 1: Debt ratio Bartley Barstools has an equity multiplier of 2.4, and its assets are financed with some combination of long- term debt and common equity. What is its debt ratio?

Question 2: Du Pont analysis Doublewide Dealers has an ROA of 10 percent, a 2 percent profit margin, and an ROE of 15 percent. What is its total assets turnover? What is its equity multiplier?

Question 3: Price/earnings ratio A company has an EPS of $ 2.00, a cash flow per share of $ 3.00, and a price/ cash flow ratio of 8.0 . What is its P/ E ratio?

Question 4: Du Pont and ROE A firm has a profit margin of 2 percent and an equity multiplier of 2.0. Its sales are $ 100 million and it has total assets of $ 50 million. What is its ROE?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Combination of long- term debt and common equity
Reference No:- TGS01839025

Now Priced at $25 (50% Discount)

Recommended (93%)

Rated (4.5/5)