Question
Answer the following questions. Show your work. a. Martinez, Inc. has a total debt ratio of 0.65, total debt of $345,000, and net income of
Answer the following questions. Show your work. a. Martinez, Inc. has a total debt ratio of 0.65, total debt of $345,000, and net income of $31,280. What is the companys return on equity? b. Sun Spree Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization? Show your work. c. Dimeback Co. has total assets of $8.5M and a total asset turnover of 1.8 times. If the return on assets is 8.5%, what is its profit margin? d. A firm has $100M in total net operating capital. Its return on invested capital is 14% and its weighted average cost of capital is 10%. What is its EVA?
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