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The balance sheet and income statement shown below are for OLD Inc. Note that the firm has no amortization charges, it does not lease any

The balance sheet and income statement shown below are for OLD Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (in millions) Assets Cash and securities 2,500 Accounts receivable 11,500 Inventories 16,000 Total current assets 30,000 Net plant and equipment 20,000 Total Assets 50,000 Liabilities and Equity Accounts payable 9,500 Notes payable 7,000 Accruals 5,500 Total current liabilities 22,000 Long-term bonds 15,000 Total debt 37,000 Common stock 2,000 Retained earnings 11,000 Total common equity 13,000 Total liabilities and equity 50,000 Income Statement (in millions): Net sales 87,500 Operating costs expect depreciation 81,813 Depreciation 1,531 EBIT 4,156 Less Interest 1,375 EBT 2,781 Taxes 973 net Income 1,808 Other Data: Shares outstanding (millions) 500 Common dividends $632.73 Int rate on notes payable & LT bonds 6.25% Federal plus state income tax rate 35% Year-end stock price $43.39 1. Whats the firms Debit Ratio? 2. Whats the firms ROA? 3. Whats the firms ROE? 4. Whats the firms BEP? 5. Whats the firms Profit Margin? 6. Whats the firms Operating Margin?

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