Ch. 3 | # 6
Donaldson & Son has an ROA of 10%, a 2% profit margin, and
a return on equity equal to 15%. What is the company's total
assets turnover? What is the firm's equity multiplier?
ROA
Profit margin
Return on equity
Total assets turnover
Equity mult

Ch. 2 | # 1
An investor recently purchased a corporate bond that yields
9%. The investor is in the 36% comobined federal and state tax
bracket. What is the bond's after-tax yield?
Purchased bonds
Federal and tax state
After tax yield
0.09
0.36
0.0576
5.8%

Ch. 3 | # 10
The Manor Corporation has $500,000 of debt outstanding, and it pays an
interest rate of 10% annually: Manor's annual sales are $2 million, its average
tax rate is 30%, and its net profit margin on sales is 5%. If the company does
not maintain

Ch. 3 | # 9
The Nelson Company has $1,312,500 in current assets and $525,000 in current
liabilities. Its initial inventory level is $375,000, and it will raise funds as
additional notes payable and use them to increase inventory. How much can
Nelson's sho

Ch. 2 | # 1
An investor recently purchased a corporate bond that yields
9%. The investor is in the 36% comobined federal and state tax
bracket. What is the bond's after-tax yield?
Purchased bonds
Federal and tax state
After tax yield
0.09
0.36
0.0576
5.8%

Ch. 2 | # 1
An investor recently purchased a corporate bond that yields
9%. The investor is in the 36% comobined federal and state tax
bracket. What is the bond's after-tax yield?
Purchased bonds
Federal and tax state
After tax yield
0.09
0.36
0.0576
5.8%

Ch. 2 | # 1
An investor recently purchased a corporate bond that yields
9%. The investor is in the 36% comobined federal and state tax
bracket. What is the bond's after-tax yield?
Purchased bonds
Federal and tax state
After tax yield
0.09
0.36
0.0576
5.8%

Ch. 3 | # 8
Assume you are given the following relationships for the Clayton Corporation:
Sales/total assets
1.5
Return on assests (ROA)
3%
Return on equity (ROE)
5%
Calculate Clayton's profit margin and debt ratio
Profit margin=
Debt ratio =
2%
40%
ROA =

Ch. 3 | # 11
Complete the balance sheet and sales information in the table that follows
for Hoffmeister Industries using the following financial data:
Debt ratio
50%
Quick ratio
0.8
Total assets turnover
1.5
Days sales outstanding
36.5 days
Gross profit m

Ch. 3 | # 7
Ace Industries has current assets equal to $3 million. The
company's current ratio is 1.5, and its quick ratio is 1.0. What is
the firm's level of liabilities? What is the firm's level of
inventories?
Current assets
Current ratio
Quick ratio
C

Ch. 2 | # 1
An investor recently purchased a corporate bond that yields
9%. The investor is in the 36% comobined federal and state tax
bracket. What is the bond's after-tax yield?
Purchased bonds
Federal and tax state
After tax yield
0.09
0.36
0.0576
5.8%