Total Asset of Brook Inc. is 1.80 times of its Total Equity. ROA is 9.6% and Total Equity is $ 800,000. Profit Margin is 40%. At the year end, Brook Inc. has paid $41,472 as cash dividends. Find out the following information:
a) Equity Multiplier
b) Debt to Equity Ratio
c) Net Income
d) Total Asset
e) Total Equity
f) Sales
g) Retained Earnings
h) Total Asset Turn Over
i) Dividend Pay Out Ratio
j) Retention Ratio
k) Show that Du Pont Identity holds for Brook Inc.
As a manager, how would you interpret Du Pont Identity? What are additional insights Du Pont Identity may provide you that other ratios may not? Explain in your own language.
