Question
1) Bartley Barstools has an equity multiplier of 2.4, and its assets are financed with some combination of long-term debt and common equity. What is
1)Bartley Barstools has an equity multiplier of 2.4, and its assets are financed with some combination of long-term debt and common equity. What is its equity ratio? What is its debt ratio?
2) Doublewide dealershave an ROA of 10%, a 2% profit margin, and an ROE of 15%. What is its total assets turnover? What is its equity multiplier?
3)Jaster Jets has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt and $6 billion in common equity. It has 800 million shares of common stock outstanding, and its stock price is $32 per share. What is Jaster's market/book ratio?
4)A company has an EPS of $2.00, a cash flow per share of $3.00, and a price/cash flow ratio of 8.0X. What is its P/E ratio?
5) A firm has a profit margin of 2% and an equity multiplier of 2.0. Its sales are $100 million, and it has total assets of $50 million. What is its ROE?
6) Assume the following relationships for the Brauer Corp.:
Sales/total assets 1.5X
Return on assets (ROA) 3%
Return on equity (ROE) 5%
Calculate Brauer's profit margin and debt ratio.
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