This is from chapter 3 of your text.
Recalculate Coca-Cola’s return on equity for both 2000 and 2001 as product of the gross margin, asset turnover, and financial leverage ratios. On the basis of this analysis discuss why Coca-Cola’s return on equity increased between 2000 and 2001.
What is the sustainable growth rate of a firm with a profit margin (net income to sales) of 5 percent , an asset turnover ratio (sales to assets) f 3.1 a financial leverage ratio (assets to equity) of 1.5, and a dividend payout ratio of .4.?
Attached Excel file contains my partial... View the full answer