Homework Answers
| ROE= NET INCOME/ AVERAGE SHARE HOLDER EQUITY*100 | |||||
|
NET INCOME= 18000 |
|||||
| SHARE SHOLDER EQUITY= 260000 | |||||
| 18000/260000*100 | |||||
| 6.92 | |||||
| ROIC= NET OPERATING PROFIT AFTER TAX/INVESTED CAPITAL | |||||||
| NET OPERATING PROFIT AFTER TAX = 18000(1-60)+6000=51000*/(1-40)= 30600 | |||||||
| INVESTED CAPITAL = LONG TERM DEBT + CAPITAL= 260000+70000=330000 | |||||||
| ROIC = 30600/330000*100 | |||||||
| 9.27 | |||||||
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Ch 04: End-of-Chapter Problems - Analysis of Financial Statements < Back to Assignment Attempts: Keep the...
REMINDIAP Ch 04: End-of-Chapter Problems - Analysis of Financial Statements a Sear < Back to Assignment...
REMINDIAP Ch 04: End-of-Chapter Problems - Analysis of Financial Statements a Sear < Back to Assignment Keep the Highest: 12 Attempts: 0 3. Problem 4.03 ITED atalog Click here to read the eBook: Potential Misuses of Roe effers DUPONT ANALYSIS Henderson's Hardware has an ROA of 12%, a 7.5% profit margin, and an ROE of 20%. ions What is its total assets turnover? Round your answer to two decimal places. uccess What is its equity multiplier? Round your answer to...
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Click here to read the eBook: Potential Misuses of Roe ROE AND ROIC Baker Industries' net income is $26,000, its interest expense is $5,000, and its tax rate is 45%. Its notes payable equals $26,000, long-term debt equals $80,000, and common equity equals $260,000. The firm finances with only debt and common equity, so it has no preferred stock. What are the firm's ROE and ROIC? Round your answers to two decimal places. Do not round intermediate calculations. ROE ROIC
LI 04! EM-or-Lhapter Problems - Analysis of Financial Statements 0 X < Back to Assignment Attempts:...
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REMINDIAP Ch 04: End-of-Chapter Problems - Analysis of Financial Statements a Sear < Back to Assignment Keep the Highest: 12 Attempts: 0 3. Problem 4.03 ITED atalog Click here to read the eBook: Potential Misuses of Roe effers DUPONT ANALYSIS Henderson's Hardware has an ROA of 12%, a 7.5% profit margin, and an ROE of 20%. ions What is its total assets turnover? Round your answer to two decimal places. uccess What is its equity multiplier? Round your answer to...
Ch 04: End-of-Chapter Problems - Analysis of Financial Statements <Back to Assignment Attempts: 0 Keep the Highest: 0/1 9. Problem 4.14 Click here to read the eBook: Profitability Ratios Problem Walk-Through 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 $363,000. The firm has no plans to use preferred stock and total assets...
Q Search this course Ch 04: End-of-Chapter Problems - Analysis of Financial Statements 0 x < Back to Assignment Attempts: Keep the Highest: /1 10. Problem 4.16 Click here to read the eBook: Profitability Ratios RETURN ON EQUITY Commonwealth Construction (CC) needs $3 million of assets to get started, and it expects to have a basic earning power ratio of 20%. CC will own no securities, so all of its income will be operating income. If it so chooses, CC...
7. Problem 4.07 Click here to read the eBook: Potential Misuses of Roe ROE AND ROIC Baker Industries' net income is $27,000, its interest expense is $6,000, and its tax rate is 40%. Its notes payable equals $25,000, long-term debt equals $70,000, and common equity equals $260,000. The firm finances with only debt and common equity, so it has no preferred stock. What are the firm's ROE and ROIC? Round your answers to two decimal places. Do not round intermediate...
k to Assignment Attempts: 0 Keep the Highest: 0/2 7. Problem 4.07 Click here to read the eBook: Potential Misuses of Roe ROE AND ROIC Baker Industries' net income is $26,000, its interest expense is $6,000, and its tax rate is 35 %. Its notes payable equals $23,000, long-term debt equals $75,000, and common equity equals $255,000. The firm finances with only debt and common equity, so it has no preferred stock. What are the firm's ROE and ROJC? Round...
Ch 04: End-of-Chapter Problems-Analysis of Financial Statements <Back to Assignment Attempts: 0 Keep the Highest: 0/11 12. Problem 4.20 Click here to read the eBook: Asset Management Ratios Problem Walk-Through DSO AND ACCOUNTS RECEIVABLE Ingraham Inc. currently has $735,000 in accounts receivable, and its days sales outstanding (DSO) is 67 days. It wants to reduce its DSO to 20 days by pressuring more of its castomers to pay their bills on time. If this policy is adopted, the company's average...
04: End-of-Chapter Problems - Analysis of Financial Statements ack to Assignment Attempts: 0 Keep the Highest: 0/1 4. Problem 4.04 Click here to read the eBook: Market Value Ratios MARKET/BOOK RATIO Edelman Engines has $2 billion in total assets. Its balance sheet shows $0.1 billion in current liabilities, $0.9 billion in long-term debt, and $1 billion in common equity. It has 500 million shares of common stock outstanding, and its stock price is $38 per share. What is Edelman's market/book...
04 End-of-Chapter Problems - Analysis of Financial Statements Back to Assignment Attempts: Keep the Highest: /1 5. Problem 4.05 Click here to read the eBook: Market Value Ratios PRICE/EARNINGS RATIO A company has an EPS of $2.40, a book value per share of $25.68, and a market/book ratio of 1.5x. What is its P/E ratio? The stock price should be rounded to the nearest cent. Round your answer to two decimal places. Grade It Now Save Continue Continue without saving...
Click here to read the eBook: Potential Misuses of Roe ROE AND ROIC Baker Industries' net income is $26,000, its interest expense is $5,000, and its tax rate is 45%. Its notes payable equals $26,000, long-term debt equals $80,000, and common equity equals $260,000. The firm finances with only debt and common equity, so it has no preferred stock. What are the firm's ROE and ROIC? Round your answers to two decimal places. Do not round intermediate calculations. ROE ROIC
LI 04! EM-or-Lhapter Problems - Analysis of Financial Statements 0 X < Back to Assignment Attempts: Keep the Highest: /1 11. Problem 4.19 Click here to read the eBook: Liquidity Ratios CURRENT RATIO The Stewart Company has $966,500 in current assets and $415,595 in current liabilities. Its initial Inventory level is $222,295, and it will raise funds as additional notes payable and use them to increase inventory. How much can its short-term debt (notes payable) increase without pushing its current...
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