there is A B C D 4 part question
Proy and capital structure Analysis in the year at de Cataway ng tao.400.000 ed and cost tot 47000 4000 599,000 for eye There are only 8.000 coton to shortanding and the ima 4224 didend per share the form has 51.000.000 band on whispercentret 4. Asuming things are open the comment D. Calculate the pering onder c. Com the timestamed What does this to you about way to pay where peni? d. What is the only a. Assuming the firm's eamings are taxed at 35%, construct the firm's income statement. Complete the income statement below. (Round to the nearest dollar) Income Statement Revenues $ $ 5,400,000 4,470,000 Cost of Goods Sold Gross Profit $ 930000 134,000 796000 $ Operating Expenses Net Operating Income Interest Expense Earnings before Taxes Income Taxes 69 84.000 712000 249200 462800 Net Income 2 b. Calculate the firm's operating profit margin and net proht margin The operating profit margin is (% (Round to one decimal place) The net income margin is % (Round to one decimal place) C. Compute the times interest earned ratio. The times interest eamed ratio is times. (Round to one decimal place.) What does this ratio tell you about Callaway's ability to pay its interest expense? (Select the best choice below) O A. Callaway's operating income can fail as much as 9.5 times and still be able to repay its debt. OB. Callaway's Interest expense is 95 times higher than its competitors OC. Callaway's gross profit can fall as much as 9,5 times and still be able to service its debt D. Callaways operating income can fall as much as 9.5 times the interest expense and the company would still be able to service its debt d. What is the firm's return on equity? (Select the best choice below.) O A. The firm's return on equity is the same as the net profit margin, 8.6%. OB. There is not enough information to answer this question OC. The firm's return on equity is the same as the operating profit margin, 14.7%. D. The firm's return on equity is the sum of the operating profit margin and the net profit margin. 23.3%