Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

It is December 2020 and you are examining the financial statements of Stark Industries (see below). You know that the company has 5 million shares

image text in transcribed
image text in transcribed
It is December 2020 and you are examining the financial statements of Stark Industries (see below). You know that the company has 5 million shares outstanding and a current share price of $16. You also know that all of its cash is excess cash and that it has a marginal tax rate of 2596 What is the return on invested capital (ROIC) of Stark Industries for 2020? Select the best answer. Balance Sheet in S-millions) 2020 Liabilities $10.00 Accounts Payable $30.00 Short-Term Debt $15.00 Current Maturities of Long-Term Debt $4.00 Other Current Liabilities $59.00 Total Current Liabilities Assets Cash & Short-Term investments Accounts Receivable Inventory Other Current Assets Total Current Assets 2020 $10.00 $5.00 $15.00 59.00 $39.00 Property, Plant & Equipment $150.00 Long Term Debt Less Accumulated Depreciation 1540.00 Capital Lease Obligations Net Property, Plant Equipment $110.00 Total Debt 590.00 50.00 $90.00 Goodwill & Intangible Assets Other Long-Term Assets $18.00 Deferred Taxes $23.00 Other Long Term Liabilities (512.00 522.00 Total Liabilities $139.00 Shareholders' Equity $71.00 $210.00 Total Liabilities and Shareholders' Equity $210.00 Total Assets > Income Statement for 2020 (in $-millions) Revenues $250.00 Cost of Goods Sold ($200.00) Gross Profit $50.00 SG&A Expenses Research and Development Depreciation & Amortization Operating Income (57.00) ($5.00) ($15.00) $23.00 Other income EBIT $3.00 $26.00 Interest Expense Pretax income ($4.95) $21.05 Income Tax Net Income ($5.26) $15.79 OL 7.52% O II. 9.75% O III. 9.29% O IV. 10.77% O v. 22.24%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance For Development

Authors: Barbara Stallings

1st Edition

0815780850, 978-0815780854

More Books

Students also viewed these Finance questions

Question

Why We Form Relationships Managing Relationship Dynamics?

Answered: 1 week ago