Question 1+2

uestion 12 points) firm has a debt-to-equity ratio of 50 percent, return on its equity of 5%, a tax rate of 40%, and for its debt it pays pays 7% interest on an annual basis. What is the return on the firm's assets? Question 1 (3 points) A firm has an economic value added of $3.6 million, tax burden ratio of 0.65, total assets of $12 million, debt of $3.4 million, equity of $8.6 million, a leverage ratio of 1.4, an interest burden of 05, and return on sales of 10%, and asset turnover of 26. (a) What is the firm's return on equity? (2 points) 0.418604651 Sales/Per S Asset (b) How much the firm generatesin sales per dollar of assets? (1 point) 1 Question 36 points) 2 Please use the data in the table below to calculate each company's EVA Total Return on Capital Weighted Average cost of Capital 25 Total Total Return Assets is mil) Debt is mil) Equity (5 milyon Assets (N) on Equity in) 26 Company 1200 27. Company 150 150 2 Company C 300 29 30 (a) Calculate the EVA for companies A, B and C12 points) 31 Company A 5 ASOON 32 Company B 5.5200 33 Company C 4 ROOM 150 150