3-4 Reno Revolvers has an EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio of 8.0. What is its P/E ratio?

3-5 Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 2.0. Its sales are $100 million and it has total assets of $50 million. What is its ROE?

3-8 Assume you are given the following relationships for the Haslam Corporation:

Sales/total assets 1.2

Return on assets (ROA) 4%

Return on equity (ROE) 7%

Calculate Haslams profit margin and liabilities-to-assets ratio. Suppose half its liabilities are in the form of debt. Calculate the debt-to-assets ratio.

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 Nelsons short-term debt (notes payable) increase without pushing its current ratio below 2.0? What will be the firms quick ratio after Nelson has raised the maximum amount of short-term funds?

3-10 The Morris Corporation has $600,000 of debt outstanding, and it pays an interest rate of 8% annually. Morriss annual sales are $3 million, its average tax rate is 40%, and its net profit margin on sales is 3%. If the company does not maintain a TIE ratio of at least 5 to 1, then its bank will refuse to renew the loan and bankruptcy will result. What is Morriss TIE ratio?