Be sure to write the formulas used and substitute values. Show your work in detailed. Answers are 100% correct

21. A firm has a tax burden (defined as net profit/pretax profit) of 0.6, a leverage ratio (defined as assets/equity) of 1.3, an interest burden (defined as pretax profit/EBIT) of 0.8, a ROE (defined as net profit/equity) of 18%, and a return on sales (defined as EBIT/Sales) of 10%. What is the firms asset turnover (defined as sales/assets)?

22. A firm has a tax burden (defined as net profit/pretax profit) of 0.7, a leverage ratio (defined as assets/equity) of 1.5, an interest burden (defined as pretax profit/EBIT) of 0.7, an ATO (defined as sales/assets) of 5, and a return on sales (defined as EBIT/Sales) of 6%. What is the firms ROE (defined as net profit/equity)?

23. The 35 Items or Less Express Lane Supermarket has an ATO (defined as sales/assets) of 5, and a return on sales (defined as EBIT/Sales) of 3%. What is 35 Items or Less Express Lane Supermarkets ROA (defined as EBIT/Assets)?

24. Suppose that Off-Star currently is selling at $60 per share. You buy 100 shares, borrowing the maximum amount of the purchase price from your broker. If the initial margin is 50% and the maintenance margin is 25%, how low can Off-Star's price fall before you get a margin call? Assume the price fall happens immediately.

25. Duller Image has issued a noncallable bond that matures in 15 years. The bond has a par value of $1,000 and sells for $1,075. The bond has a 7 percent annual coupon rate. The coupon payments are made annually. What is the bond's yield to maturity?

Answers

21. 2.88 times 22. 22.05% 23. 15% 24. $40 25. 6.22%