Homework Answers
| Sales | 1219.5 |
| Operating income/EBIT | 186.2 |
| Interest expense | 2 |
| Earnings before taxes | 184.2 |
| Tax expense | 43 |
| Net Income (EAT) | 141.2 |
| Effective tax rates | =total tax expenses/Earnings before tax*100 |
| =43/184.2*100 | |
| 23.34% | |
| After tax EBIT | =Net Income+non-operating expenses |
| EBIAT | =Earnings after tax+interest expense |
| =141.2+2 | |
| 143.2 | |
| or | |
| =EBIT*(1-effective tax rate) | |
| =186.2*(1-0.2334) | |
| =186.2*0.7666 | |
| =142.74 | |
| Operating profit margin | =operating income/Sales revenue*100 |
| =186.2/1219.5*100 | |
| 15.27% | |
| Net profit Margin | = Net income/Sales revenue*100 |
| =141.2/1219.5*100 | |
| 11.58% | |
| Return on assets | =net income/average total assets*100 |
| =141.2/1330.6*100 | |
| 10.61% | |
| Return on equity | =net income/shareholders' equity*100 |
| =141.2/851.4*100 | |
| 16.58% | |
| Return on invested capital | =EBIAT/(Total debt+shareholders' equity) |
| Total debt+Shareholders equity | =total assets |
| =142.74/(1330.6) | |
| 0.11 | |
| EPS | =Net income/Shares outstanding |
| =141.2/71.17 | |
| 1.98 | |
| Market to book | =Market Capitalisation/total book value |
| =(Market price per share*shares outstanding)/(total assets-total liabilites) | |
| =(Market price per share*shares outstanding)/Shareholders' equity | |
| =(52.68*71.17)/(851.4) | |
| 4.40 | |
| Sales to capital | =Sales revenue/capital emploued |
| =sales/(total debt+shareholders' equity | |
| =1219.5/(1330.6) | |
| 0.92 | |
| Interest coverage ration | =EBIT/total interest expense |
| =186.2/2 | |
| 93.1 | |
| Fixed charges ratio | =(EBIT+Fixed charges before tax)/(fixed charges before tac+interest) |
| =(186.2+41.6)/(41.6+2) | |
| 5.22 | |
| Fixed charges before interest includes lease expense, interest expense, utilities, rent expense, etc | |
| Debt ratio | =liabilities/assets |
| =479.2/1330.6 | |
| 0.36 | |
| Debt to equity ratio | =Total debt/Shareholders' equity |
| =479.2/851.4 | |
| 0.56 | |
| Market value of equity | Total shares outshatnading*current share price |
| =52.68*71.17 | |
| 3,749.24 | |
| Firm free cashflow | =EBIAT+depreciation-capital expenditure-change in working capital |
| =142.74+93.5-161.6-6 | |
| 68.64 | |
| Cost of conventional debt% | =interest expense/conventional debt |
| =2/52 | |
| 3.85% | |
| Enterprise value of firm | =Market Capitalisation+Debt-Cash |
| =3749.236+479.2-150.9 | |
| 4077.536 |
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