FIN 571 TUTOR Let's Do This /fin571tutor.com FIN 571 TUTOR Let's Do This /fin571tutor.com | Page 54

2008 and 2009 Balance Sheets ($ in millions) What is the return on equity for 2009? 24. P lease use excel sheet in case the values changes If Wilkinson, Inc., has an equity multiplier of 1.57, total asset turnover of 1.7, and a profit margin of 6.7 percent, what is its ROE? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 25. The financial ratio measured as net income divided by sales is known as the firm's: 26. The financial ratio that measures the accounting profit per dollar of book equity is referred to as the: 27. Puffy's Pastries generates five cents of net income for every $1 in equity. Thus, Puffy's has _______ of 5 percent. 28. If stockholders want to know how much profit the firm is making on their entire investment in that firm, the stockholders should refer to the: . 29. The most effective method of directly evaluating the financial performance of a firm is to compare the financial ratios of the firm to: 30. Which one of these equations is an accurate expression of the balance sheet? 31. The financial statement summarizing a firm's accounting performance over a period of time is the: =============================================== FIN 571 Week 2 DQ 1