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标题: Reading 35: Financial Analysis Techniques-LOS f 习题精选 [打印本页]
作者: 1215    时间: 2011-3-16 16:28     标题: [2011]Session 8-Reading 35: Financial Analysis Techniques-LOS f 习题精选

Session 8: Financial Reporting and Analysis: The Income Statement, Balance Sheet, and Cash Flow Statement
Reading 35: Financial Analysis Techniques

LOS f: Demonstrate the application of and interpret changes in the component parts of the DuPont analysis (the decomposition of return on equity).

 

 

An analyst has gathered the following information about a company:

Balance Sheet

Assets
Cash 100
Accounts Receivable 750
Marketable Securities 300
Inventory 850
Property, Plant & Equip 900
Accumulated Depreciation (150)
Total Assets 2750
Liabilities and Equity
Accounts Payable 300
Short-Term Debt 130
Long-Term Debt 700
Common Equity 1000
Retained Earnings 620
Total Liab. and Stockholder's equity 2750

Income Statement

Sales 1500
COGS 1100
Gross Profit 400
SG&A 150
Operating Profit 250
Interest Expense 25
Taxes 75
Net Income 150

What is the ROE?

A)
 10.7%.
B)
 9.9%.
C)
 9.3%.

 

ROE = 150(NI) / [1000(common) + 620(RE)] = 150 / 1620 = 0.0926 or 9.3%

作者: 1215    时间: 2011-3-16 16:29

What is the net income of a firm that has a return on equity of 12%, a leverage ratio of 1.5, an asset turnover of 2, and revenue of $1 million?

A)
 $360,000.
B)
 $40,000.
C)
 $36,000.

The traditional DuPont system is given as:

ROE = (net profit margin)(asset turnover)(leverage ratio)

Solving for the net profit margin yields:

0.12 = (net profit margin) × (2) × (1.5)

 0.04 = (net profit margin)

Recognizing that the net profit margin is equal to net income / revenue we can substitute that relationship into the above equation and solve for net income:

0.04 = net income / revenue = net income / $1,000,000 

$40,000 = net income.

作者: 1215    时间: 2011-3-16 16:29

What is a company’s equity if their return on equity (ROE) is 12%, and their net income is $10 million?

A)
 $83,333,333.
B)
 $120,000,000.
C)
 $1,200,000.

One of the many ways ROE can be expressed is: ROE = net income / equity

0.12 = $10,000,000 / equity

Equity = $10,000,000 / 0.12 = $83,333,333

作者: 1215    时间: 2011-3-16 16:29

The traditional DuPont equation shows ROE equal to:

A)
 net income/sales × sales/assets × assets/equity.
B)
 EBIT/sales × sales/assets × assets/equity × (1 – tax rate).
C)
 net income/assets × sales/equity × assets/sales.

Profit margin × asset turnover × financial leverage. Although net income/assets × sales/equity × assets/sales also yields ROE, it is not the DuPont equation.

作者: 1215    时间: 2011-3-16 16:29

 

An analyst has gathered the following information about a company.

Given this information, the company’s return on equity is:

A)
 18%.
B)
 12%.
C)
 9%.

ROE = profit margin × total asset turnover × financial leverage
ROE = (0.1)(1.2)(1.5) = 0.18 or 18.0%

作者: 1215    时间: 2011-3-16 16:30

If a firm has a net profit margin of 0.05, an asset turnover of 1.465, and a leverage ratio of 1.66, what is the firm's ROE?

A)
 3.18%.
B)
 5.87%.
C)
 12.16%.

One of the many ways to express ROE = net profit margin × asset turnover × leverage ratio

ROE = (0.05)(1.465)(1.66) = 0.1216

作者: 1215    时间: 2011-3-16 16:30

Given the following information about a firm what is its return on equity (ROE)?

A)
 0.09.
B)
 0.18.
C)
 0.12.

ROE = (EAT / S)(S / A)(A / EQ)
ROE = (0.1)(1.2)(1.5) = 0.18

作者: 1215    时间: 2011-3-16 16:30

With other variables remaining constant, if profit margin rises, ROE will:

A)
 increase.
B)
 fall.
C)
 remain the same.

The DuPont equation shows clearly that ROE will increase as profit margin increases, as long as asset turn and leverage do not fall.

作者: 1215    时间: 2011-3-16 16:30

If a company has a net profit margin of 15%, an asset turnover ratio of 4.5 and a ROE of 18%, what is the equity multiplier?

A)
 0.267.
B)
 2.667.
C)
 0.523.

There are many different ways to illustrate ROE one of which is:

ROE = (net profit margin)(asset turnover)(equity multiplier)

0.18 = (0.15)(4.5)(equity multiplier)

0.18 ÷ [(0.15)(4.5)] = equity multiplier

0.18 ÷ 0.675 = equity multiplier

0.18 ÷ 0.675 = 0.267

作者: 1215    时间: 2011-3-16 16:31

When the return on equity equation (ROE) is decomposed using the original DuPont system, what three ratios comprise the components of ROE?

A)
 Net profit margin, asset turnover, asset multiplier.
B)
 Gross profit margin, asset turnover, equity multiplier.
C)
 Net profit margin, asset turnover, equity multiplier.

The three ratios can be further decomposed as follows:

Net profit margin = net income/sales

Asset turnover = sales/assets

Equity multiplier = assets/equity

作者: 1215    时间: 2011-3-16 16:31

Which of the following ratios is NOT part of the original DuPont system?

A)
 Asset turnover.
B)
 Debt to total capital.
C)
 Equity multiplier.

The debt to total capital ratio is not part of the original DuPont system. The firm’s leverage is accounted for through the equity multiplier.

作者: gaoflex    时间: 2011-11-2 02:46

thank you.



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