Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please answer questions 1-5 A- A A A E E E. E 3 4+ x AA EE , $. I, AaBbCcDdEe Normal NewCo Income Statement
please answer questions 1-5
A- A A A E E E. E 3 4+ x AA EE , $. I, AaBbCcDdEe Normal NewCo Income Statement for 2018 (S in Millions) 203 129 Sales (net) CofGs Gross profit Other expense Depr&Amort Lease expense EBIT Interest expense olwilaalwe PBT Tax @ 25% PAT Questions - Show your work and calculations (Carry all answers to 1 decimal place.) a. Calculate gross margin (%) = gross profit/total sales b. Calculate operating margin (EBIT = Operating Profit) (%) = operating income / total sales a. Calculate Pre-tax (PBT) margin (%) b. Calculate Net Margin (%) = net profit/ revenue 3. Given NewCo's LTD of $64 million at 12/31/18, what was its cash flow financial leverage using the ratio LTD - EBITDA? (x) 4. Calculate NewCo's Coverage ratios for 2018 using: a. Earnings before Interest and Tax + Interest Expense (x) b. Earnings before Interest, Lease Expense and Tax + Fixed Charges (Interest + Lease Expense) (x) 5. Given NewCo's Common Equity of $70 million at 12/31/18 and $66 million at 12/31/17, what was NewCo's ROAE for 2018? (%) Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started