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Galaxy United, Inc. 2009 Income Statement ($ in millions) Net sales $8,500 Less: Cost of goods sold 7,200 Less: Depreciation 410 Earnings before interest and

Galaxy United, Inc. 2009 Income Statement ($ in millions)
Net sales $8,500
Less: Cost of goods sold 7,200
Less: Depreciation

410

Earnings before interest and taxes 890
Less: Interest paid

82

Taxable Income 808
Less: Taxes

283

Net income

$ 525

Galaxy United, Inc. 2008 and 2009 Balance Sheets ($ in millions)

2008

2009

2008

2009

Cash $ 120 $ 140 Accounts payable $1,110 $1,150
Accounts rec. 930 780 Long-term debt 980 1,266
Inventory

1,470

1,520

Common stock $3,110 $2,910
Sub-total $2,520 $2,440 Retained earnings

510

734

Net fixed assets

3,190

3,620

Total assets

$5,710

$6,060

Total liab. & equity

$5,710

$6,060

What is the quick ratio for 2009?

.95 2.12 .80 2.27 1.32

Reliable Cars has sales of $4,070, total assets of $3,150, and a profit margin of 5 percent. The firm has a total debt ratio of 41 percent. What is the return on equity? 15.76 percent 8.47 percent 6.46 percent 12.20 percent 10.95 percent

The Wintergrass Company has an ROE of 13.8 percent and a payout ratio of 30 percent.

What is the companys sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Sustainable growth rate

%

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