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).






ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.36 : Du Pont analysis is used to perform calculati..

Answer / kangchuentat

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

Post New Answer




More Chemical Engineering Interview Questions

How many pounds (lb) are available in 1 kilogram (kg), 1 metre (m) has how many feet (ft) and 1 meter (m) has how many inches (in)?

1 Answers  


What is the reason for removing silicon from aluminum?

3 Answers   ONGC, IOCL,


which is more effective , a single extraction with a large volume of solvent or several small volume extractions? Explain.

2 Answers  


when liquid stored in spherical vessel,equilibrium shift towards liquid.what is the benefit of it?

1 Answers  


QUANTUM CHEMISTRY AND CHEMICAL ENGINEERING - EXAMPLE 31.5 : In a wavefunction, let P(x) = A cos kx + B sin kx. By using the boundary conditions of x = 0 and x = l, where P(0) = P(l) = 0, prove by mathematical calculation that P(x) = B sin (npx / l) where p = 22 / 7 approximately, n is a rounded number. A, B and k are constants.

1 Answers  






PROCESS DESIGN - EXAMPLE 21.1 : According to rules of thumb in chemical process design, consider the use of an expander for reducing the pressure of a gas when more than 20 horsepowers can be recovered. The theoretical adiabatic horsepower (THp) for expanding a gas could be estimated from the equation : THp = Q [ Ti / (8130a) ] [ 1 - (Po / Pi) ^ a ] where 3 ^ 3 is 3 power 3 or 27, Q is volumetric flowrate in standard cubic feet per minute, Ti is inlet temperature in degree Rankine, a = (k - 1) / k where k = Cp / Cv, Po and Pi are reference and systemic pressures respectively. (a) Assume Cp / Cv = 1.4, Po = 14.7 psia, (temperature in degree Rankine) = [ (temperature in degree Celsius) + 273.15 ] (9 / 5), nitrogen gas at Pi = 90 psia and 25 degree Celsius flowing at Q = 230 standard cubic feet per minute is to be vented to the atmosphere. According to rules of thumb, should an expander or a valve be used? (b) Find the outlet temperature To by using the equation To = Ti (Po / Pi) ^ a.

1 Answers  


hai....i am chandrika. if anybody having test questions for HAL,HPCL,ONGC,IOL...PLS SEND THE QUES WITH SOLVED ANSWERS TO ME TO MY MAIL ID chandrismiles@yahoo.co.uk

0 Answers   HAL,


pls send me HPCL & reliance test paper for chemical engineering.....

4 Answers   HPCL, Reliance,


colour of flame is blue as well red. why?

1 Answers   Oxford,


What is the meaning – strain? In a distillation column, if a metal block 10 cm on a side is deformed so that it becomes 9 cm long due to cooling effect, what is the strain involved in percentage?

1 Answers  


X is strong but has a very low density (1% of traditional earth materials.) and hence light weight. It is a recyclable material. The compression behaviour of X is strain rate dependent. Higher strain rates result in higher initial modulus and higher compression strength. It can also withstand unlimited number of cycling loading provided the repetitive loads are kept below 80% of the compressive strength. The internal structure of the material includes air-traps which make it poor heat conductor. X is non- biodegradable and chemically inert in both soil and water. Most acids and their water solutions do not attack it; however strong oxidizing acids do. Solvents which attack X include esters, ketones, ethers, aromatic and aliphatic hydrocarbons and their emulsions, among others. It does not support bacterial/fungal growth as well .It also has significant acoustic properties and effectively reduces the transmission of airborne sound. X is combustible and should not be exposed to open flame or other ignition sources. Combustion products are carbon monoxide, carbon dioxide, water and soot. Long-term exposure to sunlight causes yellowing and a slight embrittlement of the surface due to ultraviolet light. X is able to withstand the rigours of temperature cycling, assuring long-term performance.

0 Answers   Ford,


QUANTUM CHEMISTRY AND CHEMICAL ENGINEERING - EXAMPLE 31.4 : In a rigid rotor model in quantum chemistry, the moment of inertia I is given by an Equation E as I = Ma x La x La + Mc x Lc x Lc = m x L x L, where m = (Ma x Mc) / (Ma + Mc) and L = La + Lc, m is the reduced mass, Ma is the mass of a, Mc is the mass of c, La is the radius of a from point O, Lc is the radius of c from point O. Prove by simplest method that Equation E is wrong.

1 Answers  






Categories
  • Civil Engineering Interview Questions Civil Engineering (4638)
  • Mechanical Engineering Interview Questions Mechanical Engineering (3701)
  • Electrical Engineering Interview Questions Electrical Engineering (15776)
  • Electronics Communications Interview Questions Electronics Communications (2637)
  • Chemical Engineering Interview Questions Chemical Engineering (762)
  • Aeronautical Engineering Interview Questions Aeronautical Engineering (79)
  • Bio Engineering Interview Questions Bio Engineering (30)
  • Metallurgy Interview Questions Metallurgy (95)
  • Industrial Engineering Interview Questions Industrial Engineering (199)
  • Instrumentation Interview Questions Instrumentation (2879)
  • Automobile Engineering Interview Questions Automobile Engineering (171)
  • Mechatronics Engineering Interview Questions Mechatronics Engineering (41)
  • Marine Engineering Interview Questions Marine Engineering (62)
  • Power Plant Engineering Interview Questions Power Plant Engineering (170)
  • Engineering AllOther Interview Questions Engineering AllOther (1334)