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NEW QUESTION: 1
An analyst has extracted the following information from the financial statements of Myco:
What is the leverage ratio (total assets/equity) for Myco?
A. 2.253
B. 1.117
C. Can't say
Answer: B
Explanation:
There are two ways to do this. Method 1: TA / Eq = (TA / Sales) x (Sales / Eq) = (1/1.42) x
(13,865 / 8,739) = 1.117.
Method 2: DuPont formula - ROE = (Net income / Sales) x (Sales / Assets) x (Assets / Equity) By rearranging, Assets / Equity = 0.0965 / (0.0609 x 1.42) = 1.116 (rounding error)
NEW QUESTION: 2
A. Option D
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