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I need the green space formula. Thank you. 8. Use balance sheet and income statement data for DPH Tree Farm, Inc. to calculate the firm's

image text in transcribedimage text in transcribedI need the green space formula. Thank you.

8. Use balance sheet and income statement data for DPH Tree Farm, Inc. to calculate the firm's 2021 values for the debt management ratios. Then in the yellow cells provide your assessment of the DPH ratio compared to the industry average using Good, Fair, or Bad. Refer to Example 3-3 on page 83. DPH Tree Farm, Industry Average Assessment Inc. $ 123,000,000 $ 192,000,000 $ 570,000,000 Solution: 55.26% 68.50% $ 255,000,000 Solution: 1.24 Solution: 2.24 2.17 4.10 Total current liabilities Long-term debt Total assets Debt ratio (Total debt/Total assets) Total stockholder's equity Debt-to-equity (Total debt/Total equity) Equity multiplier (as Total assets/Total equity) Earnings before interest and taxes (EBIT) Interest Times interest earned (EBIT/Interest) Fixed-charge coverage (EBIT/(Interest+Leases+Sinking fund)) Depreciation and amortization Cash coverage (EBIT+Depreciation)/Fixed charges) *Note: the textbook has 9.62 for some unknown reason. $ 154,000,000 $ 16,000,000 Solution: 9.63* Solution: 9.63* 5.15 5.70 $ 13,000,000 Solution: 10.44 7.78 Lesson: DPH has less debt than average for a firm in its industry. This trades financial safety for potential extra returns for its stockholders. 9. Use the balance sheet and income statement for DPH Tree Farm, Inc. to calculate the firm's 2021 values for the DuPont Equations. Then in the yellow cells provide your assessment of the DPH ratio compared to the industry average using Good, Fair, or Bad. Refer to Example 3-6 on page 91. Inc. DPH Tree Farm, Industry Assessment Average Net income available to common stockholders (NIACS) $ 99,000,000 Total assets $ 570,000,000 Return on Assets (NIACS/Total assets) Solution: 17.37% 11.30% Sales $ 315,000,000 Profit margin (NIACS/Sales) Solution: 31.43% 28.25% Total assets turnover (Sales/Total assets) Solution: 0.55 0.40 Common stock $ 40,000,000 Retained earnings $ 210,000,000 Return on equity (NIACS/Common stockholder's equity) Solution: 39.60% 46.78% Equity multiplier (Total assets/Common stockholder's equity) Solution: 2.28 4.14 ROA (Profit margin x Total asset turnover)* Solution: 17.37% 11.30% ROE (Profit margin x Total asset turnover x Equity multiplier)* Solution: 39.60% 46.78% *NOTE: DuPont Equations Lesson: DPH is more profitable than the average firm in its industry as expressed by ROA, and seen in its profit margin and asset turnover ratios. However, DPH lags in its ROE compared to other firms in its industry due to a low equity multiplier from using less debt. The trade-off between ROA and ROE from using different levels of debt is evident. deben hacer per rating on and 8. Use balance sheet and income statement data for DPH Tree Farm, Inc. to calculate the firm's 2021 values for the debt management ratios. Then in the yellow cells provide your assessment of the DPH ratio compared to the industry average using Good, Fair, or Bad. Refer to Example 3-3 on page 83. DPH Tree Farm, Industry Average Assessment Inc. $ 123,000,000 $ 192,000,000 $ 570,000,000 Solution: 55.26% 68.50% $ 255,000,000 Solution: 1.24 Solution: 2.24 2.17 4.10 Total current liabilities Long-term debt Total assets Debt ratio (Total debt/Total assets) Total stockholder's equity Debt-to-equity (Total debt/Total equity) Equity multiplier (as Total assets/Total equity) Earnings before interest and taxes (EBIT) Interest Times interest earned (EBIT/Interest) Fixed-charge coverage (EBIT/(Interest+Leases+Sinking fund)) Depreciation and amortization Cash coverage (EBIT+Depreciation)/Fixed charges) *Note: the textbook has 9.62 for some unknown reason. $ 154,000,000 $ 16,000,000 Solution: 9.63* Solution: 9.63* 5.15 5.70 $ 13,000,000 Solution: 10.44 7.78 Lesson: DPH has less debt than average for a firm in its industry. This trades financial safety for potential extra returns for its stockholders. 9. Use the balance sheet and income statement for DPH Tree Farm, Inc. to calculate the firm's 2021 values for the DuPont Equations. Then in the yellow cells provide your assessment of the DPH ratio compared to the industry average using Good, Fair, or Bad. Refer to Example 3-6 on page 91. Inc. DPH Tree Farm, Industry Assessment Average Net income available to common stockholders (NIACS) $ 99,000,000 Total assets $ 570,000,000 Return on Assets (NIACS/Total assets) Solution: 17.37% 11.30% Sales $ 315,000,000 Profit margin (NIACS/Sales) Solution: 31.43% 28.25% Total assets turnover (Sales/Total assets) Solution: 0.55 0.40 Common stock $ 40,000,000 Retained earnings $ 210,000,000 Return on equity (NIACS/Common stockholder's equity) Solution: 39.60% 46.78% Equity multiplier (Total assets/Common stockholder's equity) Solution: 2.28 4.14 ROA (Profit margin x Total asset turnover)* Solution: 17.37% 11.30% ROE (Profit margin x Total asset turnover x Equity multiplier)* Solution: 39.60% 46.78% *NOTE: DuPont Equations Lesson: DPH is more profitable than the average firm in its industry as expressed by ROA, and seen in its profit margin and asset turnover ratios. However, DPH lags in its ROE compared to other firms in its industry due to a low equity multiplier from using less debt. The trade-off between ROA and ROE from using different levels of debt is evident. deben hacer per rating on and

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