Question

QUESTION 12

TABLE 3 Income Statement (in million of USD) Total sales Cost of sales Gross Profit 2020 300 -182 118 Selling, general, and administrative expenses Research and development Depreciation and amortization Other income Earnings before interest and taxes (EBIT) Interest income (expense) -17 Pretax income Taxes Net Income TABLE 4 Balance Sheet (in million of USDs) 2020 Assets Current Assets Liabilities Current Liabilities Accounts payable Notes payable short-term debt Cash 80 60 12 Accounts receivable Inventories Total current assets 152 Total current liabilities Long-Term Assets Long-Term Liabilities Net property, plant, and equipment 150 Long-term debt 110 Total long-term assets 150 Total long-term liabilities 110 Total Liabilities 173 129 Stockholders' Equity Total Liabilities and Equity 302 Total Assets Stockholders' 302

The above tables show the income statement and balance sheet for a certain company. All quantities shown are in millions of dollars.

What is the company's ROE in 2020?

QUESTION 13

1. " Tables 3 and 4 show the income statement and balance sheet for a certain company. All quantities shown are in millions of dollars. What is the company's ROA in 2020? Note: Express your answers in strictly numerical terms, and IN million of USDs."

10 points   

QUESTION 14

1. " Tables 3 and 4 show the income statement and balance sheet for a certain company. All quantities shown are in millions of dollars. If the corporation has 30 million shares outstanding, what is its EPS in 2020? Note: Express your answers in strictly numerical terms, and IN million of USDs."

QUESTION 15

1. " Tables 3 and 4 show the income statement and balance sheet for a certain company. All quantities shown are in millions of dollars. The corporation has 30 million shares outstanding. Now consider that additionally the company's managers and employees have stock options for 7 million shares; what is its diluted EPS in 2020? Note: Express your answers in strictly numerical terms, and IN million of USDs."

Answer 1

Problem 12 and Problem 13

I PROBLEM. 12. ROE = Net Income Shareholder's equity $ 4 million $ 129 million = 0.3178 or 31,78% I PROBLEM 13 l ROA = Net Income Total Asset = $ 41 million $ 302 million 0.13576 or 13.58 %

Problem 14 and Problem 15

Problem. 141 EPS = Net income a Preroned divideot Average outstanding Shower = $41 million $30 million $1.37 per Share I PROBLEM. IS Diluled EPS = Net locomo - Preferred divideot Average outstanding Share & Diluted Share = $41 million $ 30 million $ 7 million = $41 million $37 million = $1.108 per share