9.

Broward Manufacturing recently reported the following information:

Net income	$441,000
ROA	8%
Interest expense	$154,350
Accounts payable and accruals	$950,000

Broward's tax rate is 25%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, and 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC). Do not round intermediate calculations. Round your answers to two decimal places.

BEP: %

ROE: %

ROIC: %

10. you are given the following information: Stockholders' equity as reported on the firms balance sheet = $4.5 billion, price/earnings ratio = 8.5, common shares outstanding = 130 million, and market/book ratio = 2.4. The firm's market value of total debt is $7 billion, the firm has cash and equivalents totaling $230 million, and the firm's EBITDA equals $3 billion. What is the price of a share of the company's common stock? Do not round intermediate calculations. Round your answer to the nearest cent.

$

What is the firm's EV/EBITDA? Do not round intermediate calculations. Round your answer to two decimal places.

13

the W.C. Pruett Corp. has $400,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 12%. In addition, it has $800,000 of common stock on its balance sheet. It finances with only debt and common equity, so it has no preferred stock. Its annual sales are $1.92 million, its average tax rate is 25%, and its profit margin is 5%. What are its TIE ratio and its return on invested capital (ROIC)? Round your answers to two decimal places.

TIE:

ROIC: %