Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets: 2019 2018 $ 120 $ 105 Cash and equivalents Accounts receivable Inventories 300 350 Total current assets Net plant and equipment Total assets 275 375 $ 770 2,000 $2,770 $ 755 1,490 $2,245 $ 150 $ 85 75 50 170 195 $ 330 Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Income Statements: $ 395 450 1,225 700 290 1,225 400 $2,770 $2,245 2019 2018 $1,885 1,250 $1,425 1,000 Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT $ 635 $ 425 75 100 $ 535 $ 350 Interest 63 46 EBT $ 472 $ 304 76 118 Taxes (25%) Net income $ 354 $ 228 $ 54 $ 48 Dividends paid Addition to retained earnings $ 300 $ 180 100 100 Shares outstanding Price WACC $25.00 $22.50 10.00 % The 2019 current ratio indicates that Rosnan has sufficient current assets to meet its current obligations as they come due. What is the firm's 2019 total assets turnover ratio? Round your answer to four decimal places. 0.7517 Show All Feedback Given the 2019 current and total assets turnover ratios calculated above, if Rosnan's 2019 quick ratio is 1.0 then an analyst might conclude that Rosnan's fixed assets are managed inefficiently v What is the firm's 2019 debt-to-capital ratio? Round your answer to two decimal places. 0.24 % If the industry average profit margin is 12%, then Rosnan's lower than average debt-to-capital ratio might be one reason for its high profit margin. True What is the firm's 2019 price/earnings ratio? Round your answer to two decimal places. Show All Feedback Using the DuPont equation, what is the firm's 2019 ROE? Round your answer to two decimal places. % Show All Feedback