ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.36 : Du Pont analysis is used to perform calculation on Return On Equity (ROE) for an engineering organization. Let Net Income = A; Earning Before Tax (EBT) = B; Earning Before Interest, Tax (EBIT) = C; Sales = D; Assets = E; Equity = F. In 5-step Du Pont formula, let Tax Burden = G = A / B; Interest Burden = H = B / C = 1.04; EBIT % = I = C / D = 0.27; Asset Turnover = J = D / E = 0.66; Leverage = K = E / F = 2.66; ROE = L = A / F. If (1 / G) = (4 / 3) : (a) find the value of L; (b) calculate the values of A, B, C, E and F when D = $1500; (c) verify the answer (b) is correct by using the answer (a).
- 1 Answers
- 1354 Views
- I also Faced
- E-Mail Answers
ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.36 : (a) (L = A / F) = (G = A / B) (H = B / C) (I = C / D) (J = D / E) (K = E / F) = (3 / 4) (1.04) (0.27) (0.66) (2.66) = 0.37. (b) When D = $1500 : C / D = 0.27, C = 0.27 D = 0.27 ($1500) = $405. B / C = 1.04, B = 1.04 C = 1.04 ($405) = $421.20. A / B = 3 / 4, A = 3 B / 4 = 3 ($421.20) / 4 = $315.90. D / E = 0.66, E = D / 0.66 = ($1500) / 0.66 = $2272.73. E / F = 2.66, F = E / 2.66 = ($2272.73) / 2.66 = $854.41. Finally : A = $315.90, B = $421.20, C = $405, E = $2272.73, F = $854.41. (c) From answer (a), L = 0.37. From answer (b), A = $315.90, F = $854.41. Verification : L = A / F = ($315.90 / $854.41) = 0.37. The answer is given by Kang Chuen Tat; PO Box 6263, Dandenong, Victoria VIC 3175, Australia; SMS +61405421706; chuentat@hotmail.com; http://kangchuentat.wordpress.com.
| Is This Answer Correct ? | 0 Yes | 0 No |
Why is a vacuum breaker used on shell and tube heat exchangers that are utilizing steam as the heating utility?
How can you estimate the efficiency of a pump?
What does capacitor load means? How does it connect?
PROCESS CONTROL - EXAMPLE 6.1 : In a Laplace Transform Table, the Laplace transfer function of f(t) is F(s). When d(t) = f(t) then 1 = F(s). When x(t) = f(t) then X(s) = F(s). If d(t) is the impulse of a spring when d(t) = kx(t), then derive the equation for the impulse of a spring as X(s) in term of k. Next question : A controller has a transfer function a and the other controller has a transfer function b. The overall transfer function of both controllers is ab. What is the transfer function overall when both controllers have similar transfer function 1 / (Cs + k)?
when u are walking on the road, somebody got injured by accident. what is ur immediate action.
Why chlorine cylinders are laid down horizontally?
How many grams per liter would there be in a 0.35 n (normality) citric acid solution?
what is a pschycometric chart and how to use it?
While there, are many tests available to detect leaks on vessels, is there a technology available to quantify the leak, or measure the flow through a leak?
What could be a possible cause for sudden foaming in a cooling tower?
Explain what are some good uses of low-grade steam at 12 atm and 1920c?
which thing is responsible for making petroleum?
-
Civil Engineering (5085) - Mechanical Engineering (4451)
- Electrical Engineering (16632)
- Electronics Communications (3918)
- Chemical Engineering (1095)
- Aeronautical Engineering (239)
- Bio Engineering (96)
- Metallurgy (361)
- Industrial Engineering (259)
- Instrumentation (3014)
- Automobile Engineering (332)
- Mechatronics Engineering (97)
- Marine Engineering (124)
- Power Plant Engineering (172)
- Textile Engineering (575)
- Production Engineering (25)
- Satellite Systems Engineering (106)
- Engineering AllOther (1379)
