Problem 3-22 Profitability Ratios (LG4)

Ricks Travel Service has asked you to help piece together financial information on the firm for the most current year. Managers give you the following information: sales are $8.2 million, total debt is $2.1 million, debt ratio is 40 percent, and ROE is 18 percent.

Using the above information, calculate Ricks ROA. (Round your answer to 2 decimal places.)

ROA ___%

Problem 3-23 Market Value Ratios (LG5)

Leonatti Labs year-end price on its common stock is $35. The firm has total assets of $50 million, debt ratio of 65 percent, no preferred stock, and 3 million shares of common stock outstanding.

Calculate the market-to-book ratio for Leonatti Labs. (Do not round intermediate calculations and round your answer to the nearest whole number.)

Market-to-book ratio ___times

Problem 3-25 DuPont Analysis (LG6)

Last year, Stumble-on-Inn, Inc., reported an ROE of 18 percent. The firms debt ratio was 55 percent, sales were $15 million, and the capital intensity was 1.25 times.

Calculate the net income for Stumble- on-Inn last year. (Do not round intermediate calculations. Enter your answers in dollars not in millions. Round your answer to the nearest whole dollar. Use 365 days a year.)

Net income____$

Problem 3-27 Internal Growth Rate (LG6)

Dogs R Us reported a profit margin of 10.5 percent, total asset turnover of 0.75 times, debt-to-equity of 0.80 times, net income of $500,000, and dividends paid to common stockholders of $200,000. The firm has no preferred stock outstanding.

What is Dogs R Uss internal growth rate? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Internal growth rate ___%

Problem 3-28 Sustainable Growth Rate (LG6)

You have located the following information on Webbs Heating & Air Conditioning: debt ratio is 54 percent, capital intensity is 1.10 times, profit margin is 12.5 percent, and the dividend payout is 25 percent. Calculate the sustainable growth rate for Webb. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Sustainable growth rate _____%