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HOMEWORK 4 (1)

# HOMEWORK 4 (1) - Problem 4-2 Debt ratio Bartley Barstools...

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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 4-8. 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 4-9. 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 4-10. 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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HOMEWORK 4 (1) - Problem 4-2 Debt ratio Bartley Barstools...

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