Problem 3.07 – DuPont Identity
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
What is its ROE given the equity multiplier, total asset turnover, and profit margin?
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What is its ROE given the equity multiplier, total asset turnover, and profit margin?
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What is the debt-equity ratio?
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Did cash go up (source) or go down (use), and by how much? Classify each event as a source or as a use.
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How long did it take to pay off its suppliers?
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Determine the enterprise value-EBITDA multiple for a company given its market value of equity, cash, debt, EBIT, and total depreciation and amortization.
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What is the equity multiplier? Return on equity? Net income?
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Prepare the common-size balance sheets, prepare the 2021 common-base year balance sheet, Prepare the 2021 combined common-size, common-base year balance sheet for Just Dew It.
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Note whether each change on the balance sheet for Just Dew it was a source or use of cash.
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Calculate the following ratios for Just Dew It:
Current ratio.
Quick ratio.
Cash ratio.
NWC to total assets ratio.
Debt-equity ratio and equity multiplier.
Total debt ratio and long-term debt ratio.
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What is the net income?
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