PART2 MULTIPLE CHOICE PROBLEMS 25 POINTS (5 POINTS EACH) WORK TO RECEIVE ANY CREDIT. POINTS RECEIVED: DO ALL PROBLEMS AND SHow AL NUMBER CORRECT: Roth Inc.'s latest net income was $3,600,000, and it had 348,000 shares outstanding. The company wants to pay out 35% of its income, what dividend per share should it a. $3.22 b. $3.10 c. $3.00 d. $3.62 e. $2.50 What is the return on stockholders' equity for a firm with a net profit margin of 7.32 percent, sales of $1,678,580, an equity multiplier of 1.58, and total assets of $868,000? 2. b. c. d. 22.37% 20.99% 19.62% 18.00% e. 20.99% Textile Mills has sales of $1,535,000, and accounts receivable of $173,000. How long, on average, does it take for the firm's customers to pay for their purchases (use 365 day basis)? 3. a. 38.18 days b. 41.14 days c. 43.37 days d. 45.59 days e. 51.01 days 4. Children's Place has a market-to-book ratio of 2.35, net income of S104,500, a boe/E)y2 share of $42, and 45,000 shares outstanding. What is the price-to-carnings raio (P/E)? a. b. C. d. 42.50 42.22 37.77 36.29 30.78 5. JPO Corporation has the following key financial information: 5,333,000 EBIT Shares Outstanding Market Price per Share Depreciation and Amortization $52.00 Cash $52,000,000 Total Debt What is the fim's Enterprise Value (EV)to-EBITDA Multiple (ratio of EV to EBITD a. 3.86 b. 3.75 c. 2.58 d. 2.51 e. 2.45 POINTS RECEIVED: iven the information that follows, fill in the balance sheet below (45 points); Sales Gross profit margin Inventory turnover ratio Net profit margin Average collection period Debt ratio Return on assets Quick ratio $1,000,000 25% 10x 496 45 days 80% 10% 3.0x Notes: Gross profit margin - (Sales- Cost of Goods Sold)/Sales. Use Cost of Goods Sold to compute Inventory Turnover Ratio Assume a 360-day year for Days Sales Outstanding. 50,000 Accounts payable Cash Accounts receivable Inventory Long-term debt Net fixed assets Total Equity Total assets Total Liabilities and Equity A. Compute cost of goods sold. B. Compute net income. ow are selected income statement and balance sheet information for Binkse Company. Assuming that these points): Supp ly are the only items affecting the cash account for the tira Specify whether each item is a source or use of cash. Compute the change in cash and the ending cash balance assu balance of $550. $600 60 40 Net Income Depreciation Dividends Paid Increase in Marketable Securities Decrease in Accounts Receivables Decrease in Notes Payable Increase in Accounts Payable Decrease in Accrued Wages and Taxes 60 28 15 35 Increase in Inventories Decrease in Long Term Debt 80 Increase in Fixed Assets Change in Cash Ending Cash balance
