Question
Please Use a numerical solution to the problems below: Emma Corporation reports the following numbers: Total sales $4,000,000 Invested capital $1,000,000 Net operating profit less
Please Use a numerical solution to the problems below:
Emma Corporation reports the following numbers:
Total sales $4,000,000 Invested capital $1,000,000 Net operating profit less adjusted taxes $200,000 Net operating profit $260,000 Interest expense $100,000 Lease expense $200,000 Total long-term debt $1,200,000 Total Assets $3,000,000 Market price per share $142 Earnings per share $9 Book value per share $20
1. What is Emma's return on invested capital?
2. What is Emma's capital turnover ratio?
3. What is Emma's net operating profit less adjusted taxes return on sales?
4. What is Emma's times interest earned ratio?
5. What is Emma's fixed charge coverage ratio?
6. What is Emma's long-term debt to total assets ratio?
7. What is Emma's price to earnings ratio?
8. What is Emma's price to book value ratio?
Fred Corporation reports the following numbers: Operating assets $2,000,000 Financial assets $1,100,000 Total assets $3,100,000 Operating current liabilities $500,000 Financial liabilities $700,000 Stockholder's equity $1,900,000 Total liabilities and equity $3,100,000 9. What is the dollar value of Fred's net operating assets or invested capital? 10. What is the dollar value of Fred's net financial holdings? And would this be a net financial asset or a net financial liability?
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