Problem -
Which company would have the highest Dupont model? MNO company has a profit margin of 30%, total asset turnover of .6. and financial leverage of C ABC company has a profit margin of 20%. total asset turnover of 7. and financial leverage of .6 EFG company has a profit margin of 60%. total asset turnover of .4. and financial leverage of 2 XYZ company has a profit margin of 50%. total asset turnover of .5. and financial leverage of 3 BOOKMARK CLEAR Which company would have the highest Dupont model? MNO company has a profit margin of 30%, total asset turnover of .6. and financial leverage of C ABC company has a profit margin of 20%. total asset turnover of 7. and financial leverage of .6 EFG company has a profit margin of 60%. total asset turnover of .4. and financial leverage of 2 XYZ company has a profit margin of 50%. total asset turnover of .5. and financial leverage of 3 BOOKMARK CLEAR
R. N. C., Inc. wants to maintain a 40 percent dividend payout ratio and a 6 percent profit margin. The company has a total asset turnover ratio of 0.813 and a debt -equity ratio of 0.47. What is the sustainable rate of growth? 2.6% 3.8% 4.5% 5.8%
If a company has a debt-to-assets ratio of 0.7, ... (Hint: DTA = Total Liabilities / Total Assets)
the company uses more debt than equity to finance its assets.
the company uses more equity than debt to finance its assets.
the company needs to take on more debt soon.
the company has 60% more debt than the average company in their industry.