Calculate the P/E ratio Baxter has a retention ratio of 62%, a ROE of 17%, and a discount rate of 13%. What is its P/E ratio (assuming the market correctly values the company)? Hint: Remember the earlier class material (also on slide 43 --> ROE * retention = growth. Not that this says what the retention ratio is... do you need the retention ratio or something else that can be calculated knowing the retention ratio in the numerator of the P/E equation? Note: Enter your answer with two decimals.

. Using the information in the table below, answer calculate the following:   Which company demonstrates the worst leverage ratio? Explain what it depicts.         Which company demonstrates the strongest interest coverage ratio? Explain what it depicts.   Walmart Inc Target Corp Home Depot Inc/The Lowe's Cos Inc CVS Health Corp   2020 Q2 2020 Q2 2020 Q2 2020 Q2 2020 Q2 Revenue 518 76.8 110 71.8 226.8 EBI TDA 33.7 7 18.3 6.1 14.2 EBI TDA Margin 6% 9% 17% 8% 6%             Net Income 12.8 3.2 11.2 2.5 4.3 Return on Capital 11.1 14.1 39.6 13 4.9 Credit Metrics(x)           Debt/EBI TDA 2 1.9 1.8 3.4 5.9 EBI TDA/Interest 14 16.2 18.7 16 6.6 FCF Coverage 7.7 14.6 11.1 6.2 6.2 Free Cash Flow to Total Debt 0.3 0.2 0.3 0.2 0.1

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Give typing answer with explanation and conclusion  _____ 2.) A company has a tax burden ratio of 0.4, a compound leverage factor of 0.6, a return on sales of 0.9, a leverage ratio of 0.7, and an asset turnover of 0.3. What is the ROE for the company?               A.) 2.90%               B.) 4.54%               C.) 6.48%               D.) 11.4%               E.) None of the above

Current Ratio Explain what it means for a firm to have a current ratio equal to .50. Would the firm be better off it the current ratio where 1.50? What if it were 15.0? Explain your answers.