Problem 42. Debt ratio
Bartley Barstools has an equity multiplier of 2.5, and its assets are financed with some
combination of longterm debt and common equity. What is its debt ratio? Round your answer to
two decimal places.
Problem 43. Du Pont analysis
Doublewide Dealers has an ROA of 8%, a 3.5% profit margin, and an ROE of 17%.
a. What is its total assets turnover? Round your answer to two decimal places.
________
b. What is its equity multiplier? Round your answer to two decimal places.
________
Problem 44. Market/book ratio
Jaster Jets has $6 billion in total assets. Its balance sheet shows $0.3 billion in current liabilities,
$3 billion in longterm debt, and $2.7 billion in common equity. It has 600 million shares of
common stock outstanding, and its stock price is $31 per share. What is Jaster's market/book
ratio? Round your answer to two decimal places.
________
Problem 45. Price/earnings ratio
A company has an EPS of $3.00, a cash flow per share of $5.70, and a price/cash flow ratio of
7.0x. What is its P/E ratio? Round your answer to two decimal places.
6.
Problem 46. Du Pont and ROE
A firm has a profit margin of 3.5% and an equity multiplier of 2.4. Its sales are $400 million and
it has total assets of $160 million. What is its ROE? Round your answer to two decimal places.
problem 47. Du Pont and net income
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Ebersoll Mining has $6 million in sales; its ROE is 15%; and its total assets turnover is 1.8x. The
company is 55% equity financed. What is its net income? Round your answer to two decimal
places.
___________
Problem 48. Basic earning power
Duval Manufacturing recently reported the following information:
Net income
$295,000
ROA
11%
Interest expense
$118,000
Its tax rate is 30%. What is its basic earning power (BEP)? Round your answer to two decimal
places.
Problem 49. M/B and share price
You are given the following information: Stockholders' equity = $5.75 billion; price/earnings
ratio = 13.5; common shares outstanding = 64 million; and market/book ratio = 2.8. Calculate the
price of a share of the company's common stock. Round your answer to two decimal places.
________
Problem 410. Basic earning power
Assume you are given the following relationships for the Brauer Corp.:
Sales/total assets
1.6x
Return on assets (ROA)
7%
Return on equity (ROE)
15%
a. Calculate Brauer's profit margin. Round your answer to two decimal places.
b. Calculate Brauer's debt ratio. Round your answer to two decimal places.
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 Spring '10
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 Balance Sheet, Generally Accepted Accounting Principles, decimal places

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