Question 1: XYZ company has an ROA of 11%, a 6% profit margin, and an ROE of 23%. What is its total assets turnover? What is its equity multiplier? Show the calculation and circle your answer. Question 2: A firm has a profit margin of 3% and an equity multiplier of 1.9. Its sales are $150 million, and it has total assets of $60 million. What is its ROE? Question 3: Study the following financial statements. 1. What was NOW for 2017 and 2018? Show the calculation and circle your answer. Assume that all cash is excess cash; i.e., this cash is not needed for operating purposes. 2. Calculate the Free Cash Flow in 2018. Show the calculation and circle your answer. 3. What was 2018 EVA? Show the calculation and circle your answer. Assume that its after-tax cost of capital is 10% 4. What was MVA at the year-end 2018? Show the calculation and circle your answer. (Note: Share Price is $25) Balance Sheets as of December 31 2018 2017 Assets Cash and equivalents $ 15,000 $ 14,000 Accounts receivable 35.000 30,000 Inventories 33,320 27,000 Total current assets $ 83,320 $ 71,000 Net plant and equipment 48,000 46,000 Total assets $131,320 $ 117,000 Liabilities and Equity Accounts payable $ 10,100 $ 9,000 Accruals 8,000 6,000 Notes payable 7,000 5,050 Total current liabilities $ 25,100 $ 20,050 Long-term bonds 20,000 20,000 Total liabilities $ 45,100 $ 40,050 Common stock (4,000 shares) 40,000 40,000 Retained earnings 46.220 36,950 Common equity $ 86.220 $ 76,950 Total liabilities and equity 5131,320 $ 117,000 Income Statement for Year Ending December 31, 2018 Sales $210,000 Operating costs excluding depreciation and amortization 160,000 EBITDA $50,000 Depreciation and amortization 6,000 EBIT $ 44,000 Interest 5,350 EBT $ 38,650 Taxes (40%) 15,460 Net income $ 23.190 Dividends paid $ 13,920