Sally is thinking about starting a new business. The compan…
Sally is thinking about starting a new business. The company would require $700,000 of assets, financed with 40% debt and 60% equity. She will go forward only if she thinks the firm can provide an ROE of at least 16.2%. Operating at a profit margin of 12%, what is the minimum amount of sales that must be expected to support starting the business? Your answer should be between 472000 and 595000, rounded to even dollars (although decimal places are okay), with no special characters.
Read DetailsSonova Corporation has an operating income (EBIT) of $245,00…
Sonova Corporation has an operating income (EBIT) of $245,000 and a 40% tax rate. The firm has short-term debt of $115,000, long-term debt of $321,000, and common equity of $436,000. What is its return on invested capital (ROIC)? Your answer should be between 9.20 and 21.42, rounded to 2 decimal places, with no special characters.
Read DetailsHouston Pumps recently reported net income of $600,000, and…
Houston Pumps recently reported net income of $600,000, and an interest expense of $246,000. The company has total invested capital employed of $7.2 million, a tax rate of 40%, and an after-tax cost of capital of 10%. What is the company’s EVA? Your answer should be between 9200 and 37500, rounded to even dollars (although decimal places are okay), with no special characters.
Read DetailsSally is thinking about starting a new business. The compan…
Sally is thinking about starting a new business. The company would require $700,000 of assets, financed with 40% debt and 60% equity. She will go forward only if she thinks the firm can provide an ROE of at least 15.8%. Operating at a profit margin of 12%, what is the minimum amount of sales that must be expected to support starting the business? Your answer should be between 472000 and 595000, rounded to even dollars (although decimal places are okay), with no special characters.
Read DetailsThe assets of Dallas & Associates consist entirely of curren…
The assets of Dallas & Associates consist entirely of current assets and net plant and equipment. The firm has total assets of $2.5 million and net plant and equipment equals $2 million. It has notes payable of $150,000, long-term debt of $610,000, and total common equity of $1.5 million. The firm also has accounts payable and accruals of $100,000 on its balance sheet. What is the company’s total debt? Your answer should be between 670,000 and 990,000, rounded to even dollars (although decimal places are okay), with no special characters.
Read DetailsHouston Pumps recently reported net income of $600,000, and…
Houston Pumps recently reported net income of $600,000, and an interest expense of $248,000. The company has total invested capital employed of $7.2 million, a tax rate of 40%, and an after-tax cost of capital of 10%. What is the company’s EVA? Your answer should be between 9200 and 37500, rounded to even dollars (although decimal places are okay), with no special characters.
Read DetailsHouston Pumps recently reported net income of $600,000, and…
Houston Pumps recently reported net income of $600,000, and an interest expense of $240,000. The company has total invested capital employed of $7.2 million, a tax rate of 40%, and an after-tax cost of capital of 10%. What is the company’s EVA? Your answer should be between 9200 and 37500, rounded to even dollars (although decimal places are okay), with no special characters.
Read DetailsAltus Minerals recently reported $2,850 of sales, $1,280 of…
Altus Minerals recently reported $2,850 of sales, $1,280 of operating costs other than depreciation, and $250 of depreciation. The company also has an interest expense of $70 and a tax rate of 40%. How much after-tax operating income (NOPAT) does the firm have? Your answer should be between 670 and 885, rounded to even dollars (although decimal places are okay), with no special characters.
Read DetailsAt the end of the year, Shiloh Industries reported retained…
At the end of the year, Shiloh Industries reported retained earnings of $497,000 on its balance sheet, and it reported that it had $209,000 of net income during the year. The previous year’s balance sheet had reported $445,000 of retained earnings. No shares were repurchased or issued during the year. If the company has 100,000 shares outstanding, what was their dividend per share? Your answer should be between 0.85 and 1.95, rounded to 2 decimal places, with no special characters.
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