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. The Ragin Cajun had an operating income (EBIT of $260,000 last year The firm had $18,000 in depreciation expenses, $15,000 in interest expenses, and S60,000 in selling, general, and administrative expenses. If the Cajun has a marginal tax rate of 40 percent, what was its net income for last year? 2 Vroom Vroom Motors is in the 40% tax bracket and has preferred stock dividends due of S3,000 and 15,000 common stock shares outstanding. Based on this information, what are Vroom Vroom Motors earnings per share? Use the income statement information below in your calculations ost of Goods Sold 960 3. If a firms current ratio is 1.5 s current liabilities excoed its current is possible for its quick ratio to be 1.0 4. Given the following information, calculate the inventory for J&C videos: Quick ratio = 1.2; Current assets-$12,000: Current ratio 2.5 s. What is the return on investment for a firm that has a debt ratio of 0.65, a net profit margin of 6.5%, sales of$740,000, and a total asset turnover of 4?
6. Given the following information, determine Salem Companys fixed assets Sales S10,000,000 Total asset turnover = 4 times Current ratio = 2.40 Current liabiliies $500,000 Total assets- current assets+fixed assets 7. The Corporation has a current ratio of 2.0 and a quick ratio of 1.0 which means that a. the value of current assets is equal to the value of inventory. b. the value of current assets is equal to the value of current liabilities. c. the value of current liabilities is equal to the value of inventory. d. All of the above. e. None of the above 8. The Corporations common stock currently is selling at $60 per share., which represents a P/E ratio of 10. If the firm has 100 shares of common stock outstanding, a return on equity of 25 percent, and a debt ratio of 60 percent, what is its return on total assets (ROA)?
9. You are given the following information about a firm: The growth rate equals 9 percent; return on assets (ROA) is 10 percent; the debt ratio is 60 percent; and the stock is selling at $50. What is the return on equity (ROE)? 10. Big Tunas Brick Inc. had an operating income (EBIT) of S500,000 last year. The firm had $75,000 in depreciation expenses, $25,000 in interest expenses, and $50,000 in selling, general, and administrative expenses. If Big Tuna has a marginal tax rate of 35 percent, what was its after-tax cash flow for last year?
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Answer #1

1.

net income

=(EBIT-interest expense)*(1-tax rate)

=(260000-15000)*(1-40%)

=147000

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