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What is the net income if a company has a debt equity ratio of 1.40 return on assets is 8.7 percent and total equity is USD520000?
Wiki User
∙ 11y ago
Return on assets is Net income/ total assets. Hence to arrive at net income we should ascertain total assets first, as the return on assets is provided at 8.7%.
Total assets is sum of Equity plus Debt plus Other liabilities. We have total equity at USD 520000. Hence debt can be ascertained from the Debt Equity ratio at 1.40. But what about other liabilities? As it is not provided we will not be able to compute total assets and hence net income from the given particulars.
Wiki User
∙ 11y ago
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If a company has an Return on Assets of 10 percent a 2 percent profit margin and a return on equity equal to 15 percent what is the company's total assets turnover and the equity multiplier?
Company's Total Assets Turnover Ratio is 5 and Equity multiplier is 1.5 times which is cal. as Net Sales/Total Assets and Total Assets/ Shareholder's equity resp. for the two ratios.
If a company's return on equity is 10 percent its profit margin is 5 percent and its asset turnover is 1.57 what is it's equity multiplier?
EQUITY MULTIPLIER=Total Assets / Total Stockholders' Equity
When buying a company do you also get their equity?
Buying a company means buying the equity of company because equity is equal to assets - liabilities.
What is the difference between a company's assets and its liabilities or its net assets is?
Equity
A company has a total assets of 10250 dollars and its owner equity is 5000 dollars how much are the liabilities of the company?
A company has a total assets of 10250 dollars and its owner equity is 5000 dollars how much are the liabilities of the company?assets = liabilities + equity$10,250 = liabilities + $5,000 --> liabilities = $10,250 - $5,000 = $5,250In Personal Finance
What is owner's equity?
Owner's equity is considered the source of the company's assets. Owner's equity is also referred to as the book value of the company, which include the reported assets minus the reported liabilities.
Breckenridge Ski Company has total assets of 422235811 and a debt ratio of 29.5 percent Calculate the companys debt-to-equity ratio and the equity multiplier?
What is given is: total assets = $422,235,811 Debt ratio = 29.5% Find: debt-to-equity ratio Equity multiplier Debt-to-equity ratio = total debt / total equity Total debt ratio = total debt / total assets Total debt = total debt ratio x total assets = 0.295 x 422,235,811 = 124,559,564.2 Total assets = total equity + total debt Total equity = total assets - total debt = 422,235,811 - 124,559,564.2 = 297,676,246.8 Debt-to-equity ratio = total debt / total equity = 124,559,564.2 / 297,676,246.8 = 0.4184 Equity multiplier = total assets / total equity = 422,235,811 / 297,676,246.8 = 1.418
What is stockholder's equity?
Stockholder's equity is often the term used to refer to the value of a company. This is the amount that can be found on the business balance sheet when taking the assets of the company and subtracting the company's preferred stock, intangible assets, and other liabilities.
Why is accounting differenciating between assets and equity?
Equity is the proportion of those assets you own, compared to the debt on those assets. An example would be a house. A house is an asset. The equity is the amount of the mortgage that is paid off plus any appreciation the value of the house. Same with a company. Its the difference between what you own and the debt or liabilities. Assets minus liabilities equals equity. You have equity in assets.
What is the equity to assets ratio?
This ratio refers how much amount invested for fixed assets from equity. Formula for calulating this ration:- Fixed Assets/Equity(Capital+Reserves+Other accumilated Profits) If the Ratio is .75 ie 75%of Equity spend for Fixed Assets, Hence we can calculate working Capital of the Company
What is the company's assets minus its liabilities called?
Equity or net worth
What is the financial formula to determine equity multipliers?
The definition of "equity multiplier" is the measure of financial leverage and shows a company's total assets per dollar of stakeholder's equity. It is calculated as: Total Assets divided by Total Stockholder's Equity.
