Return on equity

Related BrainMass Solutions

• Capital Structure and Leverage for a Locomotive Corporation

  Expected return on the equity of an otherwise identical all-equity firm = return on assets = 14.29% since there is no debt, Expected return on assets = Proportion of equity x Return on equity + Proportion of debt x Return on debt

• Definition of Return on Equity

  Return on Equity is calculated by dividing $ 60,000 by $ 300,000 (average shareholders equity which is $ 315,000 + $ 285,000 / 2). This gives us a Return on Equity of 20%.

• Return on Common Equity vs Total Assets

  142419 Return on Common Equity vs Total Assets Would you anticipate that a firm's Return on Common Equity would be smaller or larger than that same firm's Return on Total Assets?

• Calculate Afton's return on assets and return on equity

  assets and return on equity.

• Lily Cosmetics

  = 1.5 Equity Equity = Assets/1.5 = 125/1.5 = 83.33 Return on Equity = 25/83.33 = 30% The solution explains the calculation of return on assets and debt/equity ratio for Lily Cosmetics

• Return on Equity Using Du Pont Analysis

  Return on equity =( Net Income /Sales) x (Sales / Assets ) x (Assets / Equity) Or Return on equity =Profit margin x Total asset turnover x Leverage Or Return on equity =5.5% x 2 x 2.2= 0.242 or 24.2% Answer: Return on equity=

• Difference in return on equity for two companies

  Return on Equity = Net Income/Total Equity Barden has a Return on Equity of 11.1%. The Total Equity of Barden=Net Income/Return on Equity = 1/0.111 = $9 million. On the liabilities side, Barden has $1 million in debt and $9 million in equity.

• Thomas Lane Company: calculate return on equity and return on equity ratio

  = 0.12 The expert calculate the return on equity and return on equity ratios.

• Global Financial Management

  - Return on Equity vs.