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Consider financial statements of Toy Corp, Inc. presented in ?? below. a) Identify and calculate all five components of the DuPont formula using data from
Consider financial statements of Toy Corp, Inc. presented in ?? below. a) Identify and calculate all five components of the DuPont formula using data from 2008. b) Calculate the ROE using the components of the DuPont formula from a). c) Calculate the sustainable growth rate for 2009 from the firm's ROE and plowback ratios. Table 1: Toy Corp, Inc.: Actual 2008 and estimated 2009 financial statements for fiscal year ending December 31 ($ million, except per-share data) 2008 2009 Change (%) 7.6 8.4 $4,750 $5,140 2,400 2,540 1,400 1,550 180 210 10 10 $760 $830 20 25 $740 $805 265 295 $475 $510 $1.79 $1.96 265 260 8.6 Income Statement Revenue Cost of goods sold Selling, general, and administrative expenses Depreciation Goodwill amortization Operating income Interest expense Income before taxes Income taxes Net income Earnings per share Averages shares outstanding (millions) Balance Sheet Cash Accounts receivable Inventories Net property, plant, and equipment Intangibles Total assets Current liabilities Long-term debt Total liabilities Stockholders' equity Total liabilities and equity Book value per share Annual dividend per share $400 $400 680 700 570 600 800 870 500 530 $2,950 $3,100 550 600 300 300 $850 $900 2,100 2,200 $2,950 $3,100 $7.92 $8.46 $0.55 $0.60 Consider financial statements of Toy Corp, Inc. presented in ?? below. a) Identify and calculate all five components of the DuPont formula using data from 2008. b) Calculate the ROE using the components of the DuPont formula from a). c) Calculate the sustainable growth rate for 2009 from the firm's ROE and plowback ratios. Table 1: Toy Corp, Inc.: Actual 2008 and estimated 2009 financial statements for fiscal year ending December 31 ($ million, except per-share data) 2008 2009 Change (%) 7.6 8.4 $4,750 $5,140 2,400 2,540 1,400 1,550 180 210 10 10 $760 $830 20 25 $740 $805 265 295 $475 $510 $1.79 $1.96 265 260 8.6 Income Statement Revenue Cost of goods sold Selling, general, and administrative expenses Depreciation Goodwill amortization Operating income Interest expense Income before taxes Income taxes Net income Earnings per share Averages shares outstanding (millions) Balance Sheet Cash Accounts receivable Inventories Net property, plant, and equipment Intangibles Total assets Current liabilities Long-term debt Total liabilities Stockholders' equity Total liabilities and equity Book value per share Annual dividend per share $400 $400 680 700 570 600 800 870 500 530 $2,950 $3,100 550 600 300 300 $850 $900 2,100 2,200 $2,950 $3,100 $7.92 $8.46 $0.55 $0.60
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