Module_2(1) - Module 2 Assignment 2 A 600k 4 Mill = 15 B 1 Mill 4 Mill = 25 3 4 5(40 mil x.8 365 x 45 =.18 2 $3,945,205 9 Equation Total Asset

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Module 2 Assignment 1/17/08 Page 1 2) 15% 25% 3) (40 mil x .8) / 365 x 45 = $3,945,205 4) .18 / 2 9% 5) Total Asset Turnover Net Profit Margin Equity Multiplier Return on Equity Total Score Equation Sales E.A.T Total Assets E.A.T Total Assets Sales Common Stock Equity Stockholders Equity Asset Management Profitability Return to Stockholders Profitability A 15 points B 11 points C 13 points D 12 points to begin to pull a trend to begin to improve the ratios. A) 600k / 4 Mill. = B) 1 Mill. / 4 Mill. = This is a measure of how well assets are being used to produce revenue. The higher the net profit margin is, the more effective the company is at converting revenue into actual profit. This is a measure of leverage. The higher the ratio is, the more the company is relying on debt to finance its asset base. It is used as a general indication of the company's efficiency; in other words, how much profit it is able to generate given the resources provided by its stockholders. investors usually look for
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This homework help was uploaded on 02/17/2008 for the course BUSS fin301 taught by Professor Ken during the Spring '08 term at Grand Canyon.

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Module_2(1) - Module 2 Assignment 2 A 600k 4 Mill = 15 B 1 Mill 4 Mill = 25 3 4 5(40 mil x.8 365 x 45 =.18 2 $3,945,205 9 Equation Total Asset

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