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Quantitative Problem: Rosnan Industries' 2014 and 2013 balance sheets and income statements are shown below. Balance Sheets: 2014 2013 Cash and equivalents $110 $95 Accounts

Quantitative Problem: Rosnan Industries' 2014 and 2013 balance sheets and income statements are shown below.

Balance Sheets:
2014 2013
Cash and equivalents $110 $95
Accounts receivable 275 300
Inventories 375 350
Total current assets $760 $745
Net plant and equipment 2,000 1,490
Total assets $2,760 $2,235
Accounts payable $150 $85
Accurals 75 50
Notes payable 160 185
Total current liabilities $385 $320
Long-term debt 450 290
Common stock 1,225 1,225
Retained earnings 700 400
Total liabilities and equity $2,760 $2,235

Income Statements:
2014 2013
Sales $2,000 $1,500
Operating costs excluding depreciation 1,250 1,000
EBITDA $750 $500
Depreciation and amortization 100 75
EBIT $650 $425
Interest 62 45
EBT $588 $380
Taxes (40%) 235 152
Net income $353 $228
Dividends paid $53 $48
Addition to retained earnings $300 $180
Shares outstanding 100 100
Price $25.00 $22.50

WACC

What is the firms 2014 total assets turnover ratio?

What is the firms 2014 debt-to-capital ratio?

What is the firms 2014 price/earnings ratio? Round your answer to two decimal places. Using the DuPont equation, what is the firms 2014 ROE?

10.00%

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