Question
1. Last year Electric Autos had sales of $130 million and assets at the start of the year of $210 million. If its return on
1. Last year Electric Autos had sales of $130 million and assets at the start of the year of $210 million. If its return on start-of-year assets was 15%, what was its operating profit margin? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places)
2.
A firm has a debt-to-equity ratio of 0.70 and a market-to-book ratio of 2.0. What is the ratio of the book value of debt to the market value of equity? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
3.
In the past year, TVG had revenues of $2.9 million, cost of goods sold of $2.4 million, and depreciation expense of $110,000. The firm has a single issue of debt outstanding with book value of $1.2 million on which it pays an interest rate of 10%. What is the firms times interest earned ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
4. Chiks Chickens has accounts receivable of $6,883. Sales for the year were $10,400. What is its average collection period?
5.
Home Depot entered fiscal 2017 with a total capitalization of $21,907 million. In 2017, debt investors received interest income of $878 million. Net income to shareholders was $8,657 million. (Assume a tax rate of 21%.)
Calculate the economic value added assuming its cost of capital is 10%
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