Midwest Packaging's ROE last year was only 3%; but its management has developed a new operating plan that calls for a debt-to-assets ratio of 45%, which will result in annual interest charges of $484,000. The firm has no plans to use preferred stock. Management projects an EBIT of $1,144,000 on sales of $11,000,000, and it expects to have a total assets turnover ratio of 2.3. Under these conditions, the tax rate will be 30%. If the changes are made, what will be the company's return on equity? Round your answer to two decimal places.

DSO and Accounts Receivable

Harrelson Inc. currently has $485,000 in accounts receivable, and its days sales outstanding (DSO) is 74 days. It wants to reduce its DSO to 25 days by pressuring more of its customers to pay their bills on time. If this policy is adopted, the company's average sales will fall by 15%. What will be the level of accounts receivable following the change? Assume a 365-day year. Round your answer to the nearest cent.

P/E and Stock Price

Fontaine Inc. recently reported net income of $3 million. It has 550,000 shares of common stock, which currently trades at $57 a share. Fontaine continues to expand and anticipates that 1 year from now, its net income will be $4.95 million. Over the next year it also anticipates issuing an additional 165,000 shares of stock so that 1 year from now it will have 715,000 shares of common stock. Assuming Fontaine's price/earnings ratio remains at its current level, what will be its stock price 1 year from now? Round your answer to the nearest cent.

Balance Sheet Analysis

Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.4x Days sales outstanding: 30 daysa Inventory turnover ratio: 4x Fixed assets turnover: 3.5x Current ratio: 2x Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 35% aCalculation is based on a 365-day year. Round your answer to the nearest cent.

Ratio Calculations

Graser Trucking has $24 billion in assets, and its tax rate is 35%. Its basic earning power (BEP) ratio is 17%, and its return on assets (ROA) is 4%. What is its times-interest-earned (TIE) ratio? Round your answer to two decimal places.