Problem [1] DEBT RATIO Bartley Barstools has an equity multiplier of 2.4, and its assets are financed with some combination of long-term debt and common equity. What is its equity ratio? What is its debt ratio?

Problem [2] DuPONT ANALYSIS Doublewide dealers has an ROA of 10%, a 2% profit margin, and an ROE of 15%. What is its total assets turnover? What is its equity multiplier?

Problem [3] MARKET/BOOK RATIO Jaster Jets has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt and $6 billion in common equity. It has 800 million shares of common stock outstanding, and its stock price is $32 per share. What is Jasters market/book ratio?

Problem [4] PRICE/EARNINGS RATIO A company has an EPS of $2.00, a cash flow per share of $3.00, and a price/cash flow ratio of 8.0X. What is its P/E ratio?

Problem [5] DuPONT AND ROE A firm has a profit margin of 2% and an equity multiplier of 2.0. Its sales are $100 million, and it has total assets of $50 million. What is its ROE?

Problem [6] RATIO CALCULATIONS Assume the following relationships for the Brauer Corp.:

Sales/total assets 1.5X

Return on assets (ROA) 3%

Return on equity (ROE) 5%

Calculate Brauers profit margin and debt ratio.

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