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Unformatted text preview: (ROE) is 15%. If its debt ratio is 0.35 and its total assets turnover is 2.8, what is the profit margin? Answer Selected Answer: 3.48% Correct Answer: 3.48% Question 4 3 out of 3 points Brooks Sisters' operating income (EBIT) is $500,000. The company's tax rate is 40%, its operating cash flow is $450,000, and its interest expense is $100,000. What is the company's net cash flow? (Assume depreciation is the firm's only non-cash revenue or expense.) Answer Selected Answer: $ 390,000 Correct Answer: $ 390,000 Question 5 3 out of 3 points Shop-Til-You-Drop Inc. recently reported net income of $5.2 million and depreciation of $600,000. What is its net cash flow? Assume it has no amortization expense. Answer Selected Answer: $5,800,000 Correct Answer: $5,800,000...
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- Spring '10