During the current year, Kite Corporation had average total assets are $500,000, total asset turnove. of 1.10, and a net profit margin percentage of 12.0%. Kite's interest expense equals 5.0% of its total liabilities and its income tax rate is 21.0%. For purposes of computing its operating income (or EBIT), Kite's contribution margin ratio is 25%. If Kite's return on equity is 6.6%, what is Kite's equity multiplier? Round to two decimal points. O 0.50 0.67 O 1.50
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- Terry's Markets has sales of $684,000, costs of $437,000, interest paid of $13,800, total assets of $712,000, and depreciation of $109,400. The tax rate is 21 percent and the equity multiplier is 1.6. Please use the Dupont Identity to compute the return on equity.The lawrence company has a ratio of long term debt to long term debt plus equity of .25 and a current ratio of 1.5. current liabilities are 900, sales are 6230 , profit margin is 8.1 percent what is the amount of the firms net fixt assets ?In Geri Co, the 5 year weighted average historical pre-tax economic earnings are $1,250,000. The tax rate is 28%. The hurdle and debt rate are 12.25%. The adjusted net assets from prior year-end is $2,050,000. The cap rate applicable to this kind of company is 25% pretax. Determine the value of this business using reasonable rate return on assets. a. $3,995,500 b. $2,050,000 c. $6,045,500 d. Cannot be determined from the information provided.
- Byrgenwerth Corp has $55,000,000 of assets, and its tax rate is 28%. Its Basic Earning Power (BEP) ratio is 10%, and its Return on Assets (ROA) is 2%. What is its Times-Interest-Earned (TIE) ratio?Keller Cosmetics maintains an operating profit margin of 9.00% and a sales-to-assets ratio of 3.90. It has assets of $700,000 and equity of $500,000. Assume that interest payments are $50,000 and the tax rate is 30%. a. What is the return on assets? (Enter your answer as a percent rounded to 2 decimal places.) b. What is the return on equity? (Enter your answer as a percent rounded to 2 decimal places.) Sara Togas sells all its output to Federal Stores. The following table shows selected financial data, in millions, for the two firms: Sales Interest Payment Net Income Assets at Start of Year Federal Stores $117 $21 $27 $67 Sara Togas 37 18 21 28.5 Assume tax rate is 35%. a. Calculate the sales-to-assets ratio, the operating profit margin, and the return on assets for the two firms. (Do not round intermediate calculations. Round the sales-to-assets ratio answers to 2 decimal places. Enter the operating profit margin and return on assets answers as a percent rounded to 2 decimal…The following year-end data pertain to Adan Corporation: Earnings before interest and taxes 800,000 Current assets 800,000 Non-Current assets 3,200,000 Current Liabilities 400,000 Non-current liabilities 1,000,000 Adan corporation pays an income tax rate of 30%. Its weighted average cost of capital is 10%. What is Adan corporations Economic value added (EVA)?
- The following information are available for Showan Inc: Operating Profit Margin 21%, taxes of 35%, interest expense of 120,000, sales of 3,527,000, cost of good sold 1,990,000, and total assets of 2,347,500. compute for the times interest earned ratio a. 10.15 times b. 6.75 times c. 6.17 times d. 7.20 timesLone Star Plastics has the following data:Total Assets: R100,000 ; Net Profit margin: 6.0%;Tax rate: 40% ; Debt ratio: 40.0% of which 30% is interest bearing debt;Interest rate: 8.0% : Total assets turnover: 3.0.Calculate Lone Star's EBIT (Earnings before Interest and Tax).The Malia Corporation had sales in 2019 of $65 million, total asswets of $42 million, and total liabilities of $20 million. The interest rate on th company's debt is 6 percent and its tax rate is 21 percent. The operating profit margin was 12 percent. What were the company's operating profits and net income? What was the operating return on assets and return on equity? Assume that interest must be paid on all of the debt.
- Keller Cosmetics maintains an operating profit margin of 8.15% and a sales-to-assets ratio of 3.20. It has assets of $530,000 and equity of $330,000. Assume that interest payments are $33,000 and the tax rate is 30%. a. What is the return on assets? b. What is the return on equity? Note: For all requirement, enter your answers as a percent rounded to 2 decimal places. a. Return on assets b. Return on equity % %The Lawrence Company has a ratio of long term debt to long term debt plus equity of .39 and a current ratio of 1.7. Current liabilities are 950, sales are 6370, profit margin is 9.8 percent, and ROE is 20 percent. What is the amount of the firms net fixed assets?Barnes' Brothers has the following data for the year ending 12/31/12: Net income = $500; Net operating profit after taxes (NOPAT) = $850; Total assets = $3,000; Short-term investments = $100; Stockholders' equity = $2,000; Total debt = $700; and Total operating capital = $3,000. Barnes' weighted average cost of capital is 17.1%. What is its economic value added (EVA)? (Round your answer to 2 decimal places.)