Lily Cosmetics
Not what you're looking for?
Please verify and explain
Lily Cosmetics has annual sales of $500,000,000
maintains a net after tax profit margin of 5%
and has a sales-to-assets ratio of 4
a. What is its return on assets?
b. If its debt/equity ratio is 0.5 , what is the return on equity?
My answers are:
A. 250,000,000
b. 4:1
Am I correct? If not please explain where I went wrong.
Purchase this Solution
Solution Summary
The solution explains the calculation of return on assets and debt/equity ratio for Lily Cosmetics
Solution Preview
Your answers are not correct. You have to calculate the return on assets and equity. The return is expressed as a percentage and is a percentage of net income.
See below the calculations
Annual Sales = $500 million
Profit Margin = Net ...
Purchase this Solution
Free BrainMass Quizzes
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.