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A. Kaye's Kitchenware has a market/book ratio equal to 1. Its stock price is $13 per share and it has 4.6 million shares outstanding. The
A. Kaye's Kitchenware has a market/book ratio equal to 1. Its stock price is $13 per share and it has 4.6 million shares outstanding. The firm's total capital is $135 million and it finances with only debt and common equity. What is its debt-to-capital ratio? Round your answer to two decimal places.
____ %
B. Baker Industries net income is $27,000, its interest expense is $5,000, and its tax rate is 25%. Its notes payable equals $23,000, long-term debt equals $70,000, and common equity equals $240,000. The firm finances with only debt and common equity, so it has no preferred stock. What are the firms ROE and ROIC? Do not round intermediate calculations. Round your answers to two decimal places.
ROE: 11. 25%
ROIC: ____ %
C.
Assume the following relationships for the Caulder Corp.:
Sales/Total assets 1.9
Return on assets (ROA) 4.0%
Return on equity (ROE) 8.0%
Calculate Caulder's profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Do not round intermediate calculations. Round your answers to two decimal places.
Profit margin: ___%
Debt-to-capital ratio: ___ %
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