6. Rappaport Corp.'s sales last year were $425,000, and its net income after taxes was $23,000. What was its profit margin on sales?

Select the correct answer.

a. 5.41 %

b. 5.53 %

c. 5.50 %

d. 5.44 %

e. 5.47 %

7. Branch Corp.'s total assets at the end of last year were $365,000 and its net income after taxes was $22,750. What was its return on total assets?

Select the correct answer.

a. 5.63%

b. 5.33%

c. 5.03%

d. 5.93%

e. 6.23%

8. Vang Corp.'s stock price at the end of last year was $49 and its earnings per share for the year were $2.30. What was its P/E ratio?

Select the correct answer.

a. 21.90

b. 21.30

c. 21.70

d. 21.10

e. 21.50

9. Northwest Lumber had a profit margin of 11%, a total assets turnover of 1.5, and an equity multiplier of 1.8. What was the firm's ROE?

Select the correct answer.

a. 29.52%

b. 29.79%

c. 29.61%

d. 29.88%

e. 29.70%

10. Last year Vaughn Corp. had sales of $315,000 and a net income of $17,832, and its year-end assets were $210,000. The firm's total-debt-to-total-assets ratio was 50%. Based on the DuPont equation, what was Vaughn's ROE?

Select the correct answer.

a. 17.32%

b. 16.98%

c. 16.64%

d. 16.30%

e. 17.66%