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Macroeconomics Question and Problems

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7.Donaldson + son has an ROA of 10%, a 2% profit margin, and a return on equity equal to 15%. What is the company's total assets turnover? what is the firms equity multiplier?

8. The nelson company has $1,312,500 in current assets and $525,000 in current liabilities. Its initial inventory level is $375,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson short term debt(notes payable) increase without pushing its current ratio below 2.0? What will be the rims quick ration after Nelson has raises the maximum amount of short-term funds?

9.
The Manor corp has $500,000 of debt outstanding, and it pays an interest rate of 10% annually: Manor's annual sales are $2 million, its average tax rate is 30%, and its net profit margin on sales is 5%. If the company does not maintain a TIE ratio of at least 5 to , then its bank will refuse to renew the loan and bankruptcy will result. What is Manor's Tie ratio?

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This solution provides a detailed, step by step calculation of the given macroeconomics problems.

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