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Please make sure rounding is correct and if you could help me out and show me the steps for each question that would be awesome!
Please make sure rounding is correct and if you could help me out and show me the steps for each question that would be awesome!
Question 1 3 p Company A has a total debt of 114483 million dollars with an interest rate of 9%. Based on the Income statement the earnings before interest and taxes are 63930 million dollars. Assuming a tax rate of 27%, what is the net income (in million dollars) for company A? (Round your answer to three decimal places. For example, 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234) The company XYZ had ROE last year of only 1.1%, but management has developed a new operating plan designed to improve performance. The new plan calls for a debt ratio of 70%, which will result in interest charges of $331 million per year. Management also expects EBIT of $749 million on sales of $9.3 billion next year and it expects to have a total asset turnover of 2.3 as well. Under these conditions, the company's tax rate will be 23%. What will be their ROE? (Round your answer to three decimal places. For example, 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234) Earnings per share for Dell Technological Inc. is 5.19. If the price to earnings ratio for HP Inc. (which is a comparable company to Dell) is 9.91, estimate the Dell's Stock price. (Round your answer to three decimal places. For example, 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234) Step by Step Solution
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