Homework Answers
EBIT = $1,204,000
Less: Interest = $504,000
Income before tax = $700,000
Less: Tax@35% = $245,000
Net Income = $455,000
Asset Turnover Ratio = 2
Sales/Total Assets = 2
Total Assets = 14,000,000/2 = $7,000,000
Equity = 7,000,000*45% = $3,150,000
ROE = Net Income/Equity
= 455,000/3,150,000
= 14.44%
Add Answer to:
Problem Walk-Through RETURN ON EQUITY Pacific Packaging's ROE last year was only 3%; but its management...
RETURN ON EQUITY Pacific Packaging's ROE last year was only 2%; but its management has developed...
RETURN ON EQUITY Pacific Packaging's ROE last year was only 2%; but its management has developed a new operating plan that calls for a debt-to-capital ratio of 60%, which will result in annual interest charges of $672,000. The firm has no plans to use preferred stock and total assets equal total invested capital. Management projects an EBIT of $1,078,000 on sales of $14,000,000, and it expects to have a total assets turnover ratio of 1.6. Under these conditions, the tax...
Return on Equity Pacific Packaging's ROE last year was only 5%; but its management has developed...
Return on Equity Pacific Packaging's ROE last year was only 5%; but its management has developed a new operating plan that calls for a debt-to-capital ratio of 60%, which will result in annual interest charges of $245,000. The firm has no plans to use preferred stock and total assets equal total invested capital. Management projects an EBIT of $756,000 on sales of $7,000,000, and it expects to have a total assets turnover ratio of 1.4. Under these conditions, the tax...
RETURN ON EQUITY Pacific Packaging's ROE last year was only 2%; but its management has developed a new operating plan th...
RETURN ON EQUITY Pacific Packaging's ROE last year was only 2%; but its management has developed a new operating plan that calls for a debt-to-capital ratio of 55%, which will result in annual interest charges of $760,000. The firm has no plans to use preferred stock and total assets equal total invested capital. Management projects an EBIT of $1,862,000 on sales of $19,000,000, and it expects to have a total assets turnover ratio of 2.2. Under these conditions, the tax...
Pacific Packaging's ROE last year was only 5%; but its management has developed a new operating...
Pacific Packaging's ROE last year was only 5%; but its management has developed a new operating plan that calls for a debt-to-capital ratio of 50%, which will result in annual interest charges of $235,000. The firm has no plans to use preferred stock and total assets equal total invested capital. Management projects an EBIT of $545,000 on sales of $5,000,000, and it expects to have a total assets turnover ratio of 1.8. Under these conditions, the tax rate will be...
Pacific Packaging's ROE last year was only 6%; but its management has developed a new operating...
Pacific Packaging's ROE last year was only 6%; but its management has developed a new operating plan that calls for a debt-to-capital ratio of 40%, which will result in annual interest charges of $688,000. The firm has no plans to use preferred stock and total assets equal total invested capital. Management projects an EBIT of $1,856,000 on sales of $16,000,000, and it expects to have a total assets turnover ratio of 2.5. Under these conditions, the tax rate will be...
Pacific Packaging's ROE last year was only 6%; but its management has developed a new operating...
Pacific Packaging's ROE last year was only 6%; but its management has developed a new operating plan that calls for a debt-to-capital ratio of 50%, which will result in annual interest charges of $188,000. The firm has no plans to use preferred stock and total assets equal total invested capital. Management projects an EBIT of $416,000 on sales of $4,000,000, and it expects to have a total assets turnover ratio of 2.2. Under these conditions, the tax rate will be...
Pacific Packaging's ROE last year was only 5%, but its management has developed a new operating...
Pacific Packaging's ROE last year was only 5%, but its management has developed a new operating plan that calls for a debt-to-capital ratio of 55%, which will result in annual interest charges of $736,000. The firm has no plans to use preferred stock and total assets equal total invested capital Management projects an EBIT of $1,328,000 on sales of $16,000,000, a it expects to have a total assets turnover ratio of 2.7. Under these conditions, the tax rate will be...
4-3! PIONILADILY RALIUS Problem Walk-Through Return on Equity Midwest Packaging's ROE last year was only 5%;...
4-3! PIONILADILY RALIUS Problem Walk-Through Return on Equity Midwest Packaging's ROE last year was only 5%; but its management has developed a new operating plan that calls for a debt-to-assets ratio of 60%, which will result in annual interest charges of $510,000. The firm has no plans to use preferred stock. Management projects an EBIT of $1,695,000 on sales of $15,000,000, and it expects to have a total assets turnover ratio of 2.8. Under these conditions, the tax rate will...
Return on Equity Midwest Packaging's ROE last year was only 596, but its management has developed...
Return on Equity Midwest Packaging's ROE last year was only 596, but its management has developed a new operating plan that calls for a debt-to-assets ratio of 40%, which will result in annual interest charges of $222,000. The firm has no plans to use preferred stock. Management projects an EBIT of $666,000 on sales of $6,000,000, and it expects to have a total assets turnover ratio of 2.6. Under these conditions, the tax rate will be 30%. If the changes...
please answer both questions 567 4.14 Pacific Packaging's ROE last year was only 4%; but its management has de...
please answer both questions
567 4.14 Pacific Packaging's ROE last year was only 4%; but its management has developed a new operating plan that calls for a debt-to-capital ratio of 45%, which will result in a $540,000. The firm has no plans to use preferred stock and total assets equal total invested capital. Management projects an EBIT of $1,278,000 on sales of $18,000,000, and it expects to have a total assets turnover ratio of 3.6. Under these conditions, the tax...
RETURN ON EQUITY Pacific Packaging's ROE last year was only 2%; but its management has developed a new operating plan that calls for a debt-to-capital ratio of 60%, which will result in annual interest charges of $672,000. The firm has no plans to use preferred stock and total assets equal total invested capital. Management projects an EBIT of $1,078,000 on sales of $14,000,000, and it expects to have a total assets turnover ratio of 1.6. Under these conditions, the tax...
Pacific Packaging's ROE last year was only 5%, but its management has developed a new operating plan that calls for a debt-to-capital ratio of 55%, which will result in annual interest charges of $736,000. The firm has no plans to use preferred stock and total assets equal total invested capital Management projects an EBIT of $1,328,000 on sales of $16,000,000, a it expects to have a total assets turnover ratio of 2.7. Under these conditions, the tax rate will be...
4-3! PIONILADILY RALIUS Problem Walk-Through Return on Equity Midwest Packaging's ROE last year was only 5%; but its management has developed a new operating plan that calls for a debt-to-assets ratio of 60%, which will result in annual interest charges of $510,000. The firm has no plans to use preferred stock. Management projects an EBIT of $1,695,000 on sales of $15,000,000, and it expects to have a total assets turnover ratio of 2.8. Under these conditions, the tax rate will...
Return on Equity Midwest Packaging's ROE last year was only 596, but its management has developed a new operating plan that calls for a debt-to-assets ratio of 40%, which will result in annual interest charges of $222,000. The firm has no plans to use preferred stock. Management projects an EBIT of $666,000 on sales of $6,000,000, and it expects to have a total assets turnover ratio of 2.6. Under these conditions, the tax rate will be 30%. If the changes...
please answer both questions
567 4.14 Pacific Packaging's ROE last year was only 4%; but its management has developed a new operating plan that calls for a debt-to-capital ratio of 45%, which will result in a $540,000. The firm has no plans to use preferred stock and total assets equal total invested capital. Management projects an EBIT of $1,278,000 on sales of $18,000,000, and it expects to have a total assets turnover ratio of 3.6. Under these conditions, the tax...
Most questions answered within 3 hours.
-
find the critical value associated with a right sided hypothesis of
the mean using a sample...
asked 1 hour ago -
Which of the following statements is true with respect to a
simple linear regression model?
a....
asked 2 hours ago -
The energy required to remove an electron from a surface of a
solid element is called...
asked 3 hours ago -
How would you train your employees to avoid risks of using
mobile devices?
asked 4 hours ago -
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 4 hours ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 5 hours ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 6 hours ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 7 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 7 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 8 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 10 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 10 hours ago