1-

Assume the following ratios are constant.

Total asset turnover	=	2.17
Profit margin	=	4.5	%
Equity multiplier	=	1.64
Payout ratio	=	42	%

Required:

What is the sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Sustainable growth rate

%

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2-

In response to complaints about high prices, a grocery chain runs the following advertising campaign: If you pay your child $1 to go buy $33 worth of groceries, then your child makes about twice as much on the trip as we do. Youve collected the following information from the grocery chains financial statements:

(millions)
Sales	$	752.00
Net income		11.35
Total assets		315.00
Total debt		152.00

Requirement 1:

What is the childs profit margin? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Childs profit margin

%

Requirement 2:

What is the stores profit margin? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Stores profit margin

%

Requirement 3:

What is the ROE? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

ROE

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3-

For the most recent year, Seether, Inc., had sales of $451,000, cost of goods sold of $218,000, depreciation expense of $57,700, and additions to retained earnings of $49,900. The firm currently has 36,000 shares of common stock outstanding, and the previous years dividends per share were $1.30. The income tax rate is 35 percent.

Required:

What was the EBIT? (Do not round intermediate calculations.)

EBIT

$

How much in total dividends did the company pay? (Do not round intermediate calculations.)

Total dividends

$

What was the company's net income? (Do not round intermediate calculations.)

Net income

$

What was the company's earnings before tax (EBT)? (Do not round intermediate calculations. Round your answer to the nearest whole number(e.g., 32).)

EBT

$

What was the company's interest payment? (Do not round intermediate calculations. Round your answer to the nearest whole number(e.g., 32).)

Interest

$

What was the company's times interest earned rtio? (Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Times interest earned

times

%