HW02B

3.The Market Value of Equity if Thompson Inc is $580,000. The Balance Sheet shows $35,000 in Cash and $190,000 in Debt. The Income Statement has EBIT of $91,000. The total of Depreciation & Amortization is $135,000. What is the Enterprise Value to EBITDA ratio?

4. Kindle Fire Prvention Corp has a Net Profit Margin of 4.6%, Total Asset Turnover (TAT) of 2.3 and a Return on Equity (ROE) of 19.14%.

What is the firm's Debt-Equity Ratio?

Give your answer to 2 decimals.

Hint: Equity Multiplier = 1 + Debt: Equity Ratio

5. Children's Place has a market-to-book ratio of 2.9, net income of $68,400, a book value per share of $37, and 45,000 shares of stock outstanding.

What is the price-earnings ratio?

6. The Veggie Hut has net income of $26,400, total equity of $102,700, and total assets of $189,500. The dividend payout ratio is 0.30.

What is the internal growth rate?

7. Joshua's Antiques has a total asset turnover rate of 1.2, an equity multiplier of 1.4, a profit margin of 5 percent, a retention ratio of 0.8, and total assets of $120,000.

What is the sustainable growth rate?

8. The Berry Patch has sales of $438,000, cost of goods sold of $369,000, depreciation of $37,400, and interest expense of $13,800. The tax rate is 35 percent.

What is the times interest earned ratio?

9. Earth Fare Foods has total assets of $229,800, net fixed assets of $71,500, long-term debt of $52,000, and total debt of $78,700.

If inventory is $45,000, what is the current ratio?

10. The Universal Network has sales of $496,500, cost of goods sold of $264,900, and inventory of $87,100. What is the inventory turnover rate?

11. Textile Mills has sales of $923,000, cost of goods sold of $748,000, and accounts receivable of $106,700.

How long on average does it take the firm's customers to pay for their purchases?

HW 03A

1. Arnold makes an investment of $ 100,000 in a bank for a period of 5 years.

How much will he receive at the end of the term, if the bank pays an interest rate of 6% at Simple Interest.

(round your answer to the nearest dollar)

2. Arnold makes an investment of $ 100,000 in a bank for a period of 5 years.

How much will he receive at the end of the term, if the bank pays an interest rate of 6%, compounded annually?

(round your answer to the nearest dollar)

6.You have $5,000 you want to invest for the next 45 years.

You are offered an investment plan that will pay you 6 percent per year for the next 15 years and 10 percent per year for the last 30 years.

How much will you have at the end of the 45 years? Find your answer to the nearest $

7.Isabelle wants to save up an amount of $150,000 for her son's college education fees, coming up in 5 years. Find the amount that should be invested today, if the bank pays an interest rate of 5%, compounded annually.

(round your answer to the nearest dollar)