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STEP 1
Return on equity (ROE) is a metric for evaluating a company's financial performance that demonstrates the connection between earnings and investor returns.
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- 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)O'Brien Inc. has the following data: r RF=5.00%; RP M=6.00%; and b=1.10. What is the firm's cost of equity from retained earnings based on the CAPM? A. 11.83% B. 13.22% C. 11.25% D. 8.93% E. 11.60%O'Brien Inc. has the following data: rRF = 5.00%; RPM = 6.00%; and b = 1.40. What is the firm's cost of equity from retained earnings based on the CAPM? a. 15.41% b. 16.21% c. 12.86% d. 13.40% e. 13.67%
- O'Brien Inc. has the following data: rRF = 5.00%; RPM = 6.00%; and b = 1.70. What is the firm's cost of equity from retained earnings based on the CAPM? 15.20% 15.05% 17.33% 13.68% 15.35%3. ABC Corp.’s equity multiplier is 1.25. What is its debt ratio? 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?2. O'Brien Inc. has the following data: IRE = 5.00%; RPM = 6.00%; and b = 1.25. What is the firm's cost of equity from retained earnings based on the CAPM? a. 13.75% b. 11.88% c. 12.25% d. 9.63% e. 12.50%
- 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?Draiman Company has a debt-equity ratio of 0.75. Return on assets is 10.4 percent, and total equity is $900,000. What is the equity multiplier? Return on equity? Netincome?A firm has an ROA of 11%, a 6% profit margin, and an ROE of 23%. What is its equity multiplier?
- If Rooters, Inc., has an equity multiplier of 1.90, total asset turnover of 1.20, and a profit margin of 8 percent, what is its ROE?16. O'Brien Inc. has the following data: TRF = 5.00%; RPM = 6.00%; and b = 1.10. What is the firm's cost of equity from retained earnings based on the CAPM? a. 11.83% b. 13.22% C. 11.25% d. 8.93% e. 11.60% istiqaFace Mask Company has a Total Sales of P100,000,000. Its total assets is 50,000,000 and a profit margin of 2%. What is the ROE if the equity multiplier is 2.0?