Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. esport electronics expects the following numbers f

Esport Electronics expects the following numbers for next year: Sales: $2,500,000 Costs: $1,000,000...

80.2K

Verified Solution

Question

Finance

image
image
Esport Electronics expects the following numbers for next year: Sales: $2,500,000 Costs: $1,000,000 (excluding depreciation) Depreciation: $200,000 Interest: 100,000 Tax rate: 26% Total asset turnover: 3 Total debt ratio: 40% . Part 1 IB Attempt 4/5 for 9.4 pts. What is the expected profit margin? 3+ decimals IB Attempt 1/5 for 10 pts. Part 2 What is the expected equity multiplier? 1.67 Correct With a total debt ratio of 40%, Esports uses $0.4 of debt for each $1 of assets. Therefore, the company uses $0.6 of equity for each $1 of assets: Total assets 1 Equity multiplier = = 1.667 Total equity 0.6 IB Attempt 1/5 for 10 pts. Part 3 What is the expected return on equity? 2+ decimals

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Please answer both questions 1) A chimney (length 24.2 m, mass 401 kg) cracks at the...

Physics
Q

There has been a lot of interest about replacing gasoline with ethanol, but is this really...

Mechanical Engineering
Q

From a psychological viewpoint, explain why people purchase a product or service or accept the message...

Psychology
Q

9 Most nitrogen fixation in plants requires O Symbiotic relationship with termites ODirect lightning strikes...

Biology
Q

If a bar is made of copper whose coefficient of linear expansion is one and...

Physics
Q

Determine if the following equation has x axis symmetry y axis symmetry origin symmetry or...

Algebra
Q

5 10 20 Not drawn to scale A AS Postulate B AA Postulate What are...

Algebra
Q

Find the future value of an annuity which has deposits for 150 per month for...

Algebra
Q

8. As the largest invading force in the history of warfare,...

Accounting
Q

Long-term productive assets used in the normal course of business are typically classified as: ...

Accounting
Q

2. Find the planned June open-to-buy dollars for the activewear department if: a. June sales...

Accounting
Q

can someone please help asap!! What is the annual risk-free...

Finance