Question 10

Income Statements: 2018 2017 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 10.00%What is the firm's 2018 current ratio? Round your answer to two decimal places. If the industry average debt-to-totalassets ratio is 30%, then Rosnan's creditors have a cushion than indicated by the industry average. what is the firm's 2018 net prot margin? Round your answer to four decimal places. W0 If the industry average profit margin is 12%, then Rosnan's lower than average debt-to-total-assets ratio might be one reason for its high prot margin. What is the firm's 2018 price/earnings ratio? Round your answer to two decimal places. Using the DuPont equation, what is the firm's 2018 ROE? Round your answer to two decimal places. "/0 Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Balance Sheets: 2018 2017 $70 $55 275 300 375 350 $720 $705 2,000 1,490 $2,720 $2,195 $150 $85 75 50 120 145 $345 $280 450 290 1,225 1,225 700 400 $2,720 $2,195