Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Wims, Inc., has sales of $18.2 million, total assets of $13.2 million and total debt of $4 million. The profit margin is 10 percent. a.

image text in transcribed
image text in transcribed
Wims, Inc., has sales of $18.2 million, total assets of $13.2 million and total debt of $4 million. The profit margin is 10 percent. a. What is the company's net income? (Do not round Intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) b. What is the company's ROA? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) What is the company's ROE? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) c. a. Net income b. ROA 13.78% 19.78% C. ROE 6 10 points The most recent financial statements for Minnie's Manufacturing Co. are shown below. Income Statement Balance Sheet Sales $95,400 Current 46,200 assets $ 35,500 Debt Costs 68,250 Fixed assets 95,300 Equity 84,600 Skipped 130,800 Total eBook Taxable income $ 27,150 $130,800 Total Hint Tax 6,245 Print Net Income References $20,905 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external equity financing is possible What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Capital Budgeting

Authors: Pamela P. Peterson

1st Edition

0471218332, 9780471218333

More Books

Students also viewed these Finance questions

Question

2. Are there more men or women? (find statistics)

Answered: 1 week ago

Question

understand how design and writing connect in mass communication.

Answered: 1 week ago

Question

Who is the audience?

Answered: 1 week ago