question 21

20. Which one of the following may be the best measure of company performance since it accounts for the opportunity cost of capital? A. EVA B. Net income C. Increase in sales D. Current ratio 21. What is the market price of a share of stock for a firm with 100,000 shares outstanding, a book value of equity of $4,000,000, and a market-to-book ratio of 3 A 120 B. 80 C. 60 D. 50 22. A firm's after-tax operating income was $1,500,000 in 2016. It started the year with total capital of 58,000,000 and raised an additional St million of capital during the year. The additional capital raised during 2016 only started to affect the operating income in 2017. Which value best represents the return on capital for 2016 A. 12.5% B. 18.7596 C. 11.1% D. 10.0% 23. What is the residual insems for a firm that is entirely equity-financed with St million in capital, $300,000 in net income, and a 20% cost of capital (equity charge) A S100,000 B. $140,000 C. $240,000 D. $500,000 24. Using the following information presented, calculate the ROE Sales- 5140. Net Income - 510. Average assets - 3025 Average equity - 2150 A 23.7 B. 25.6 C 27.0 D205