Question
How would I go about solving this kind of problem? The Johnson Corporation has $20 million of debt outstanding with a coupon rate of 6.4%,
How would I go about solving this kind of problem?
The Johnson Corporation has $20 million of debt outstanding with a coupon rate of 6.4%, and 2 million shares of common stock outstanding with a current market price of $62 per share.For the year just ended, Johnson's times interest earned ratio was 7.1, its asset turnover ratio was 5.3, its end of year accounts receivable balance was 18 million, its average collection period was 33 days, and its tax rate was 32%.Calculate Johnson's debt-to-equity ratio, its return on assets, its return on equity, the net profit margin, its price earnings ratio, and its market-to-book ratio.
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