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- Calculate the ROE for a firm if it has a profit margin of 20%, an asset turnover of 2, and an equity multiplier of 1.4.. If a firm has a P/E ratio of 15, and a ROE of 14 %, what is the market to book valueof equity?You are given the following information about a firm: The growth rate equals 8 percent; return on assets (ROA) is 10 percent; the debt ratio is 20 percent; and the stock is selling at $36. What is the return on equity (ROE)?a. 14.0%b. 12.5%c. 15.0%d. 2.5%e. 13.5%
- You are given the following information about a firm. The growth rate equals 8 percent; return of the assets (ROA) is 10 percent; the debt ration is 20 percent; and the stock is selling at $36. What is the return on equity (ROE)?4.Easy Corp.’s return on assets measure is 0.20 (20%. Its return on equity measure is 0.25 (25%). What is the firm’s equity multiplier? (Please show work and explain)A firm has total book value of equity of $2 million, a market to book ratio (market price/book value) of 4, and a book value per share of $5.00. What is the market value per share of the firm's equity?
- What is the cost of equity for a firm if the firm's equity has a beta of 1.4, the risk-free rate of return is 3%, the expected return on the market is 10%, and the return to the company's debt is 7%?What is the cost of equity for a firm where the required return on assets is 15.71%, the cost of debt is 6.92%, and the target debt/equity ratio is 1.19? Ignore taxes. O A) 19.05%If we know that a firm has a net profit margin of 4.3 %, total asset turnover of 0.77, and a financial leverage multiplier of 1.36, what is its ROE? What is the advantage to using the DuPont system to calculate ROE over the direct calculation of earnings available for common stockholders divided by common stock equity?
- . A firm, its debt, and equity have β of 1.0, 0.5, and 3.0, respectively. What is the firm’s equity ratio?Estimating Cost of Equity Capital Assume that a company’s market beta equals 0.8, the risk-free rate is 5%, and the market return equals 8%. Compute the company’s cost of equity capital. Round answer to one decimal place (ex: 0.0245 = 2.5%) Answer%Suppose firm A has just earned BDT 5 per share out of which it retained BDT 3 and paid out the remaining balance as dividend. The required rate of return is 10% and the return on equity is 6%. What is firm A’s justified P/E?