Austral & company has a debt ratio of 0.5, a total assets turnover ratio of 0.25, and a profit margin of 10%. the board of directors is unhappy with the current return on equity (roe), and they think it could be doubled. this could be accomplished (1) by increasing the profit margin to 12% and (2) by increasing debt utilization. total assets turnover will not change. what new debt ratio, along with the new 12% profit margin, would be required to double the roe?
Answers: 3
Business, 22.06.2019 14:00
Your dormitory, griffingate, has appointed you central banker of its economy, which deals in the currency of wizcoins. assume that the velocity of wizcoins in griffingate is constant at 10,000 transactions per year. right now, real gdp is 1,000 wizcoins, and there are 2,000 wizcoins in existence.
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Business, 23.06.2019 01:10
Hillside issues $4,000,000 of 6%, 15-year bonds dated january 1, 2016, that pay interest semiannually on june 30 and december 31. the bonds are issued at a price of $4,895,980. required: 1. prepare the january 1, 2016, journal entry to record the bonds’ issuance
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If a society decides to produce consumer goods from its available resources, it is answering the basic economic question
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Austral & company has a debt ratio of 0.5, a total assets turnover ratio of 0.25, and a profit...
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