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The Rollerball Corporation's industry averages are as follows: Net Profit Margin-7.5%; Total Asset Turnover-22; Total Assets/Equity-2.0 Rollerball Corporation has the following financial statements for year
The Rollerball Corporation's industry averages are as follows: Net Profit Margin-7.5%; Total Asset Turnover-22; Total Assets/Equity-2.0 Rollerball Corporation has the following financial statements for year ending 12/31/2008. (000's omitted) Discuss your results. Sales Cost of Goods Sold Gross Profit Depreciation Operating Expenses Administration Exp Operating Profit Interest Expense Profit Before Taxes Taxes Net Income Dividends 5,450 2,200 820 470 115 795 707 247 460 250 Assets Cash Accounts Receivable Inventory Liabilities 100 Notes Payable 1,250Accounts Payable 850 1550 1,125 Total Current 2,400 Liab Total Current 2,475 Long Term Debt 425 Assets Net Fixed Assets Total Assets 1.450 Common Stock 3,925 Retained Earnings 400 700 3,925 Total Liab. & Earnings a. b. c. d. Calculate Rollerball Corporation's Net Profit Margin. Calculate Rollerball Corporation's Total Asset Turnover Calculate Rollerball Corporation's Total Assets/Equity ratio. Calculate the return on equity (ROE) for Rollerball Corporation and the Industry e. Calculate the sustainable growth rate for Rollerball Corporation. f.Johnson Company just paid an annual dividend of S1.75. The next dividend will be paid one year from today. Johnson Company expects a constant growth of 5% in dividends forever. The required rate of return for this company's common stock is 13%. What is the value of one share of common stock
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