a. Compute profitability measures: RNOA, ROA and ROE for 2019 and 2018 using the numbers as reported by the company. Note: Round answers to one decimal place (ex: 0.2345 = 23.5%).
Q: Burke's Corner currently sells blue jeans and T-shirts. Management is considering adding fleece tops…
A: Operating cash flow refers to the cash flow generated from the investment or working on a particular…
Q: orse and Buggy Incorporated is in a declining industry. Sales, earnings, and dividends are all…
A: The expected return in back alludes to the expected pick up or misfortune from speculation,…
Q: Information about three securities appears next. Stock 1 Stock 2 Bond 1 Beginning-of-Year Price…
A: An investor generally buys an investment with the key determination to sell them for profit in the…
Q: cy. Today, it announced nds to increase by $1 a to settle down to a ma at must be its price?
A: Dividend paid a year from now = D1 = $1 per shareDividend increase = $1 for each of the other 2…
Q: A used car with $5,000.00 cash price may be purchased by making payments of $275.00 to be made at…
A: Therefore, the nominal interest rate charged is approximately 6.17% per year.Explanation:Calculate…
Q: WTCC Corp. needs to raise 24,000,000 dollars by issuing bonds. Yields on government paper are as…
A: WTCC Bond Pricing and Issuance1. Calculate the yield to maturity (YTM):Since the CFO prefers a long…
Q: you deposit 850 in an account that pays an annual rate of 7.9%. find the future value of the…
A: The future value of an investment is compounded value of investment in the future after compounding…
Q: Enter the 3 missing pieces of information. Note: Please make sure your final answer(s) are in…
A: Nominal Interest Rate = ((1 + Periodic Interest Rate)^(1 / Compound) - 1) * CompoundPeriodic…
Q: Consider a stock currently priced at $60. Assume that in each period of one month, the stock could…
A: The objective of the question is to calculate the value of a 3-month European call option on a stock…
Q: You find the ing Tre of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ??…
A: Par value$1,000Coupon rate6.252%Ask price104.6409%Current year2022maturity year2040
Q: Growth Enterprises believes its latest project, which will cost $140,000 to install, will generate a…
A: NPV and IRR are the most used method of capital budgeting based on the time value of money.
Q: Consider the following cash flows on two mutually exclusive projects for the Bahama Recreation…
A: Deepwashing Fishing17.40%New Submarine Ride16.33%Explanation: Cash Flows Discounted Cash Flows…
Q: You are thinking about investing $4,619 in your friend's landscaping business. Even though you know…
A: $5,220.00Explanation:You may use the following formula to solve this problem:Present Value = Future…
Q: Whose cash flow is best described by the timeline shown below? Date (years) 0 1 2 3…
A: The objective of the question is to identify whose cash flow matches the given timeline. The…
Q: Choose the best answer to the following question. Explain your reasoning with one or more complete…
A: When we buy something we usually ask the price from the seller before making the purchase. The…
Q: 2. Consider a 6% T-note with 1.5 years to maturity. Spot rates (expressed as semiannual yields to…
A: Arbitrage is the practice of exploiting price differences in different markets or securities to make…
Q: Consider the characteristics of the following three stocks: Standard Deviation Pic Image Tax Help…
A: Stock correlation in an investment portfolio refers to how prices of stocks move together. If they…
Q: Days in accounts receivables and days cash on hand are both capital structure ratios. True False
A: Capital structure ratios are financial metrics used to evaluate a company's financial health and…
Q: The Generic Genetic (GG) Corporation pays no cash dividends currently and is not expected to for the…
A: Intrinsic value refers to the estimated true worth of a single share of a company's stock based on…
Q: If Sandy can afford car payments of $280 per month for 6 years, what is the price of a car that she…
A: Present value illustrates the current value of a sum of money that will be received or paid in the…
Q: Emusk Inc. is evaluating two mutually exclusive projects. The required rate of return on these…
A: Internal rate of return refers to the return that is earned by the investors over the investment…
Q: Spock Enterprises has a market value of $100 million in debt outstanding. They also have a market…
A: Total market value of debt = $100 Million Total market value of equity = $400 Million
Q: a. Calculate the project NPV. (Do not round intermediate calculations and round your answer to 2…
A: Net present value is determined by deducting the initial investment from the current value of cash…
Q: Bird's Eye Treehouses, Incorporated, a Kentucky company, has determined that a majority of its…
A: Net present value (NPV) is a financial metric used to assess the profitability of an investment. It…
Q: Stryker Corporation is a leading medical technology company headquartered in Kalamazoo, Michigan,…
A: A sustainable growth rate is a rate that shows the growth capability of the company without having…
Q: A retired couple invested $12000 in bonds at a simple interest rate of 8%. At the end of one year,…
A: Simple interest is the interest which is calculated only on the principal amount. When we calculate…
Q: A 9 year bond with maturity value of $4300.02 and a yield rate of 4.9% was sold 18 months before…
A: Bond valuation is the process of determining the fair value of a bond, which represents the present…
Q: Suppose a stock had an initial price of $74 per share, paid a dividend of $1.65 per share during the…
A: We invest in financial assets like stocks to get returns from our investments. The returns are…
Q: You want to buy a $26,000 car. The company is offering a 5% interest rate for 36 months (3 years).…
A: Loan amount = present value of the future periodic payments=>Loan amount = whereLoan amount =…
Q: Required information Section Break (8-11) [The following information applies to the questions…
A: A minimum variance portfolio is a concept in modern portfolio theory (MPT) that refers to a specific…
Q: a. What is the ex-dividend price of a share in a perfect capital market? b. If the board instead…
A: (a) Computation of the ex-divided price of share ina perfect capital market are as…
Q: The present value of a 7 year lease that requires payments of $600 at the beginning of every month…
A: Compound = Monthly = 12Time = t = 7 * 12 = 84Payment = p = $600Present Value = pv = $48,300Payment…
Q: The following is part of the computer output from a regression of monthly returns on Waterworks…
A: The term "portfolio hedging" describes the employment of several financial tools or techniques to…
Q: me how to calculate this without using excel? Thanks
A: A mortgage payment is a regular commitment that a borrower makes to a lender in order to pay back a…
Q: How much must you deposit each year into your retirement account starting now and continuing through…
A: An annuity is a financial product that provides a series of payments to the annuitant over a…
Q: WACC 012345 6 7.80% Project A Project B -1225 395 402 423 432 489 512 -2146 592.5 603 634.5 648…
A: Net Present Value (NPV) is a financial measure used to analyze the profitability of an investment by…
Q: 2. If you deposit $2500 two years from now in a bank account that pays 4% compounded annually, how…
A: The amount that is deposited today will be more in dollar terms at certain future date due to the…
Q: Given the annual interest rate and a line of an amortization schedule for that loan, complete the…
A: An amortization schedule is a table that shows the breakdown of each loan payment, detailing how…
Q: You wish to buy a $20,500 car. The dealer offers you a 5-year loan with a 9 percent APR. What are…
A:
Q: You have just received a windfall from an investment you made in a friend's business. She will be…
A: Present value is the discounted value of all the future cash flows.Future value is the compounded…
Q: You purchased an annual-interest coupon bond one year ago with 7 years remaining to maturity at the…
A: Bond not only generates coupon cash stream, but also capital gain/loss for the investor. This total…
Q: Consider the accompanying cash flow diagram. Compute the equivalent annual worth at i = 8%. $2,000…
A: Equivalent annuity is the annual cash flow having same present value as that of given cash flow…
Q: Hi, how do i solve this corp fi problem without using excel? Retirement options: Option 1: Make…
A: Present value refers to the current value of the future cash flow. It is calculated by discounting…
Q: You find the following Treasury bond quotes. To calculate the number of years until maturity, assume…
A: Yield to Maturity (YTM) is a measure used to evaluate the potential return of a bond if held until…
Q: A project will cost $8,00, 000 initially, generate $ 80,000 (nominal) per year of cash flow for 10…
A: IRR is the break even rate of return at present value of cash flow is equal to initial investment of…
Q: You observe the following term structure for Treasury bills: Yield (%) 5.1 5.4 5.6 5.8 6.1 Maturity…
A: Treasury securities refer to the debt instruments issued by the U.S. Department of the Treasury to…
Q: Mendez Company has identified an investment project with the following cash flows. Year Cash Flow…
A: Present value is the current value of a future sum of money, taking into account factors such as…
Q: A property-casualty insurer brings in $6.25 million in premiums on its homeowners MP line of…
A: Hence, the question has been solved in detail explanation manner. RatioPercentageLoss Ratio69.5…
Q: Keller Cosmetics maintains an operating profit margin of 5% and asset turnover ratio of 6. a. What…
A: We need to use below equations to solve above problems.ROA = Operating profit margin* Assets…
Q: Critical path activities in this project?
A: The critical path activities in this project are: A, B, C, D, E, F, G, and H. These activities must…
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
hh
Step by step
Solved in 3 steps with 1 images
- vas.msst Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income Other data: Shares outstanding (millions) Common dividends (millions of $) Int rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price $98,000 91.140 1,960 $4,900 960 $3,940 1,576 $2,364 500.00 $827.40 6% 40% $56.74 Refer to Exhibit 4.1. What is the firm's ROA? Do not round your intermediate calculations,Selected balance sheet and income statement information from Illinois Tool Works follows. $ millions Net operating profit after tax (NOPAT) $2,897 $3,009 Net income 2,798 2,845 Total assets 15,671 15,465 $17,451 Equity 3,147 3,384 3,384 10,493 Net operating profit after tax (NOA) 9,224 9,840 Treasury stock 21,070 19,475 17,274 a. Compute profitability measures: RNOA, ROA and ROE for 2019 and 2018 using the numbers as reported by the company. Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). Metric RNOA ROA ROE 2019 30.4 % 17.9 % ✓ 88.91 % * $ millions Assets, restated $ Equity, restated b. Adjust equity and total assets for the amount of treasury stock. 2019 2018 34,940 $ 36,741 $ 24,217 ✔ $ 22,859 $ 2019 2018 30.4 % 8.08 % * 2019 2018 2017 11.89% 29.6 % 18.28 % * 84.1 %✔ Using these restated numbers, recompute RNOA, ROA and ROE for both years. Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). Metric RNOA ROA ROE 2018 2017 29.6 % 8.64 % * 13.08% ✔ 34,725…SalesOperating costs (excluding depreciation and amortization) EBITDADepreciation and amortization Earnings before interest and taxes Interest Earnings before taxesTaxes (40%)Net income available to common stockholders Common dividendsSEBRINGCORPORATION: BALANCESHEETSFORYEARENDINGDECEMBER31 (FIGURES ARE STATED IN MILLIONS) Assets: Cash and marketable securities Accounts receivableInventories Total current assets Gross Fixed Assets Less DepreciationNet plant and equipment Total assets 2005 2004 $3,600.0 $3,000.0 $3,060.0 $2,550.0 $540.0 $450.0 90.0 75.0 $450.0 $375.0 65.0 60.0 $385.0 $315.0 154.0 126.0 $231.0 $189.0 $15.0 $13.0 2005 2004 $ 36.00 $ 30.00 $ 340.00 $ 250.00 $ 457.00 $ 351.00 $ 833.00 $ 631.00 $ 1,065.00 $ 825.00 $ (165.00) $ (75.00) $ 900.00 $ 750.00 $ 1,733.00 $ 1,381.00 $ 324.00 $ 270.00 $ 201.00 $ 155.00 $ 216.00 $ 180.00 $ 741.00 $ 605.00 $ 450.00 $ 450.00 $ 1,191.00 $ 1,055.00 $ 150.00 $ 150.00 $ 392.00 $ 176.00 $ 542.00 $ 326.00 $ 1,733.00 $ 1,381.00…
- Compute and Interpret Ratios Selected balance sheet and income statement information from Illinois Tool Works follows. $ millions Net operating profit after tax (NOPAT) $2,897 $3,009 Net income 2,798 2,845 Total assets 15,671 15,465 $17,451 3,147 3,384 3,384 10,493 9,224 9,840 21,070 19,475 17,274 Equity Net operating profit after tax (NOA) Treasury stock a. Compute profitability measures: RNOA, ROA and ROE for 2019 and 2018 using the numbers as reported by the company. Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). 2018 Metric RNOA ROA ROE 2019 $ millions Assets, restated $ Equity, restated Metric RNOA b. Adjust equity and total assets for the amount of treasury stock. 2019 2018 2017 ROA ROE % % % 2019 % % % $ $ Using these restated numbers, recompute RNOA, ROA and ROE for both years. Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). 2018 % % % 2019 2018 2017 % % % $ $Using the financial data for Key Wahl Industries Sales Net Profit After Tax Total Assets Total Liabilities O.50 02 O.75 $4,500,000 What is the debt ratio? O.075 $337,5000 $6,750,000 $ 3,375,000Use the following information to answer this question: Windswept, Incorporated 2021 Income Statement ($ in millions) Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes Net income Cash Accounts received Inventory Total Net fixed assets Total assets What is the equity multiplier for 2021? Multiple Choice 1.78 times 3.33 times 2.25 times 1.31 times 2.64 times 2020 2021 $ 250 890 $ 9,900 7,650 390 $ 1,860 88 Windswept, Incorporated 2020 and 2021 Balance Sheets ($ in millions) $220 990 1,750 1,655 $ 2,960 $ 2,795 3,360 3,880 $ 6,320 $ 6,675 $ 1,772 372 $1,400 Accounts payable Long-term debt Common stock Retained earnings Total liabilities & equity 2020 $ 1,540 1,010 3,240 530 $ 6,320 2021 $ 1,632 1,293 2,970 780 $ 6,675
- Selected ratios formulars Unilever 2021 BOPP 2021 ROCE PBIT / net assets * 100 (32,424/39,406 *100 = - 82% 102,154 / 192,758 *100 =53% Net Assets Turnover Revenue / Net Assets 526,912 / 39,406 = 13 times 214,174 / 192,758 = 1 time Gross Profit Margin Gross profit / revenue *100 97,046 / 526,912 *100 18.4% 115,462 / 214,174 * 100 54% Net Profit Before Tax PBT / revenue * 100 (35,005) / 526,912* 100 = -6.6% 104,778 / 214,174* 100 =48.9% Current Ratio Current assets / current liabilities 214,665/341,171 = 0.5 139,104 / 30,368 = 4.5 Quick Ratio Current assets – inventory / current liabilities 214,665-91,627 /341,171 = 0.4 139,104 -13,248/ 30,368 = 4.1 Inventory Days Inventory / cost of sales * 365 days 91,627/ 429,866 *365 = 77 days 13,248 / 101,397 *365 = 47 days Receivable Days Receivables / cost of sales * 365 days 24,515 / 429,866 *365 =20 days 92,860 / 101,397 *365 =334 days Payable Days…Compute and Interpret Ratios Selected balance sheet and income statement information from Illinois Tool Works follows. $ millions 2019 2018 2017 Net operating profit after tax (NOPAT) $2,480 $2,575 Net income 2,395 2,435 Total assets 13,561 13,383 $15,102 Equity 2,723 2,929 2,929 Net operating profit after tax (NOA) 7,982 8,516 9,080 Treasury stock 18,033 16,668 14,784 Compute profitability measures: RNOA, ROA and ROE for 2019 and 2018 using the numbers as reported by the company. Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). b. Adjust equity and total assets for the amount of treasury stock. Using these restated numbers, recompute RNOA, ROA and ROE for both years.Note: Round answers to one decimal place (ex: 0.2345 = 23.5%).Some selected financial statement items belonging to MNO Company are given in the table below. According to this information, which of the following is Return on Assets (ROA) in 2021? Inventory 12,500Total Assets in 2021 110,000Current Liabilities 40,000Total Assets in 2020 90,000Net Profit 12,000Shareholders' Equity 65,000 Select one:a. 0.12b. 0.10c. 0.18d. 0.13
- Compute and Interpret Ratios Selected balance sheet and income statement information from Illinois Tool Works follows. $ millions 2019 2018 2017 Net operating profit after tax (NOPAT) $2,897 $3,009 Net income 2,798 2,845 Total assets 15,671 15,465 $17,451 Equity 3,147 3,384 3,384 Net operating profit after tax (NOA) 9,224 9,840 10,493 Treasury stock 21,070 19,475 17,274 a. Compute profitability measures: RNOA, ROA and ROE for 2019 and 2018 using the numbers as reported by the company.Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). Metric 2019 2018 RNOA Answer Answer ROA Answer Answer ROE Answer Answer b. Adjust equity and total assets for the amount of treasury stock. $ millions 2019 2018 2017 Assets, restated Answer Answer Answer Equity, restated Answer Answer Answer Using these restated numbers, recompute RNOA, ROA and ROE for both years.Note: Round answers to one decimal…Compute and Interpret Ratios Selected balance sheet and income statement information from Illinois Tool Works follows. $ millions 2019 2018 2017 Net operating profit after tax (NOPAT) $2,897 $3,009 Net income 2,798 2,845 Total assets 15,671 15,465 $17,451 Equity 3,147 3,384 3,384 Net operating profit after tax (NOA) 9,224 9,840 10,493 Treasury stock 21,070 19,475 17,274 b. Adjust equity and total assets for the amount of treasury stock. $ millions 2019 2018 2017 Assets, restated Answer Answer Answer Equity, restated Answer Answer AnswerCompute and Interpret Ratios Selected balance sheet and income statement information from Illinois Tool Works follows. $ millions 2019 2018 2017 Net operating profit after tax (NOPAT) $2,897 $3,009 Net income 2,798 2,845 Total assets 15,671 15,465 $17,451 Equity 3,147 3,384 3,384 Net operating profit after tax (NOA) 9,224 9,840 10,493 Treasury stock 21,070 19,475 17,274 Using these restated numbers, recompute RNOA, ROA and ROE for both years.Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). Metric 2019 2018 RNOA Answer Answer ROA Answer Answer ROE Answer Answer