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

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Problem 4-2. Debt ratio Bartley Barstools has an equity multiplier of 2.5, and its assets are financed with some combination of long-term debt and common equity. What is its debt ratio? Round your answer to two decimal places. Problem 4-3. 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 4-4. Market/book ratio Jaster Jets has $6 billion in total assets. Its balance sheet shows $0.3 billion in current liabilities, $3 billion in long-term 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 4-5. 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 4-6. 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 4-7. Du Pont and net income
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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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This note was uploaded on 10/13/2010 for the course USMLE na taught by Professor Na during the Spring '10 term at St. Matthew's University.

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

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