all questions with full working out Question 1 Meyer Inc's assets are $625,000, and its total debt outstanding is $185,000. The new CFO wants to establish a debt/assets ratio of 55%. The size of the firm does not change. How much debt must the company add or subtract to achieve the target debt ratio? Select one: a.$183,773 b.$175,022 c.$166,688 d.$158,750 e.$192,962 Question 2 Wie Corp's sales last year were $315,000, and its year-end total assets were $355,000. The average firm in the industry has a total assets turnover ratio (TATO) of 2.4. The firm's new CFO believes the firm has excess assets that can be sold so as to bring the TATO down to the industry average without affecting sales. By how much must the assets be reduced to bring the TATO to the industry average, holding sales constant? Select one: a.$212,563 b.$246,684 c.$201,934 d.$223,750 e.$234,938 Question 3 Last year Kruse Corp had $305,000 of assets, $403,000 of sales, $28,250 of net income, and a debt-to-total-assets ratio of 39%. The new CFO believes the firm has excessive fixed assets and inventory that could be sold, enabling it to reduce its total assets to $252,500. Sales, costs, and net income would not be affected, and the firm would maintain the same debt ratio (but with less total debt). By how much would the reduction in assets improve the ROE? Select one: a.3.31% b.2.85% c.3.00% d.3.48% e.3.16% Question 4 Han Corp's sales last year were $425,000, and its year-end receivables were $52,500. The firm sells on terms that call for customers to pay 30 days after the purchase, but some delay payment beyond Day 30. On average, how many days late do customers pay? Base your answer on this equation: DSO - Allowed credit period = Average days late, and use a 365-day year when calculating the DSO. Select one: a.15.84 b.12.94 c.14.33 d.13.62 e.15.09 Question 5 Meyer Inc's assets are $625,000, and its total debt outstanding is $185,000. The new CFO wants to establish a debt/assets ratio of 55%. The size of the firm does not change. How much debt must the company add or subtract to achieve the target debt ratio? Select one: a.$166,688 b.$175,022 c.$192,962 d.$158,750 e.$183,773 Question 6 Chang Corp. has $375,000 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $595,000, and its net income was $25,000. Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15.0%. What profit margin would the firm need in order to achieve the 15% ROE, holding everything else constant? Select one: a.9.93% b.9.45% c.10.94% d.10.42% e.11.49% Question 7 Brookman Inc's latest EPS was $2.75, its book value per share was $22.75, it had 315,000 shares outstanding, and its debt/assets ratio was 44%. How much debt was outstanding? Select one: a.$5,081,639 b.$5,630,625 c.$4,827,557 d.$5,349,094 e.$4,586,179 Question 8 Luci's Juice has a profit margin of 2.5%, total asset turnover of 2.0, assets of $2 000 and equity of $1 000. According to the Du Pont formula what is ROE? Select one: a.10% b.10 000 c.5% d.The calculation requires the equity multiplier which is not included