Answers the questions on a Word Document. ASAP. Thank you.

Problems 1, 2, 3, 4, 5, 6, --Pages 73, 74, 75, 76 1. The Board of Directors of Collins Entertainment, Inc, has been pressuring its CCEO to boost ROE. During a recent interview on CNBC, he announces his plan to improve the firm's financial performance. He will raise prices on all of the company's products by 10%. He justifies the plan by observing that ROE can be decomposed into the product of profit margin, asset turnover, and financial leverage. By raising prices, he will increase the profit margin and thus ROE. Does this plan sense to you? Why or why not? 2. A. Which company would you expect to have a higher price-to-price earnings ratio, Google or railroad company Union Pacific? Why? B. Which company would you expect to have the higher debt-to-equity ratio, a financial institution or a high-technology company? Why? C. Which company would you expect to have a higher profit margin, an appliance manufacturer or grocer? Why? D. Which company would you expect to have a higher current ratio , a jewelry store or an online bookstore? Why? 3. True or false? A. A company's assets-to-equity ratio always equals one plus its liabilities-to-equity ratio. B. A company's Return on equity will always equal or exceed its return on assets. C. A company's collection period should always be less than its payables period. D. A company's current ratio must always equal or exceed its acid-test ratio. E. All else equal, a firm would prefer to have a higher asset turnover ratio. F. Two firm can have the same earnings yield but different price -to-earnings ratios. G. Ignoring taxes and transactions costs, unrealized paper gains are less valuable than realized cash earnings. 4. Your firm is considering the acquisition of very promising technology company. One executive argues against the move, pointing out that because the technology company is presently losing money, the acquisition will cause your firm's return on equity to fall. A. Is the executive correct in predicting that ROE will fall? B. How important should changes in ROE be in this decision 5. Selected financial data for Amberjack Corporation follows. _________________________________________________________________________________ __________________________($ thousands)_____________ _________________________________________Year 1_________Year 2_______________________ Sales 271,161 457,977 Cost of goods sold 249,181 341,204 Net income (155,034) (403,509) Cash flow from operations (58,405) (20,437) Cash Marketable securities Accounts receivable Inventories Total current assets 341,180 341,762 21,011 6,473 710,427 268,872 36,900 35,298 72,106 413,176 Accounts payable 28,908 22,758 Accrued liabilities 44,310 124,851 Total Current liabilities 73,218 147,610 ______________________________________________________________________________ A. Calculate the current and quick ratio at the end of each year. How has the company's short-term liquidity changed over this period? B. Assuming a 365-day year for all calculations, compute the following: i. The collection period each year based on sales. Ii. The inventory turnover and the payables period each year based on cost of goods sold. Iii. The day's sales in cash each year. Iv. The margin and profit margin each year. C. What do these calculations suggests about the company's performance? 6. Top management measures your division's performance by calculating the division's return on investment (ROI), defined as division operating income divided by division assets.Your division has done quite well recently; its ROI is 30 percent. You believe the division should invest in a new production process, but a colleague disagree, pointing out that because the new investment's first -year ROI is only 25 percent, it will hurt performance. How would you respond