Hanson corporation's present year ROE remained at last year's 14% level, while the profit margir were reduced from 8% to 4% and the leverage ratio increased from 1.2 to 1.5. The effects on asset turnover were? a. Remain constant b. Increase from 1.46 to 2.33 c. Decrease from 14.58 to 2.33 d. Increase from 4.76 to 9.60

BBF Co.’s sales increased by 10%. The firm determined the degree of total leverage at 3.0. How much is the percentage increase in Net Income?

Profit margin = 9.1%     Capital intensity ratio = .52     Debt-equity ratio = .67     Net income = $102,000     Dividends = $50,500             Based on the above information, calculate the sustainable growth rate for Northern Lights Co. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Loreto Inc. has the following financial ratios: asset turnover = 2.40; net profit margin (i.e., net income/sales) = 5%; payout ratio = 30%; equity/assets = 0.40.   a. What is Loreto's sustainable growth rate? b. What is its internal growth rate?

Over the past year, Free Inc. had an increase in its current ratio and a decline in its total asset turnover ratio. However, its sales, cash, DSO and fixed asset turnover ratio remains constant. What the following statement is correct? Group of answer choices a)Total asset decreases, current asset decreases, and inventory increases b)Total asset increases, current asset increases, and inventory increases c)Total asset increases, current asset decreases, and inventory decreases d)Total asset decreases, current asset increases, inventory increases

Calculating Weighted Average Cost of Capital and Economic Value Added (EVA) Ignacio, Inc., had after-tax operating income last year of $1,197,000. Three sources of financing were used by the company: $2 million of mortgage bonds paying 4 percent interest, $5 million of unsecured bonds paying 6 percent interest, and $10 million in common stock, which was considered to be relatively risky (with a risk premium of 8 percent). The rate on long-term treasuries is 3 percent. Ignacio, Inc., pays a marginal tax rate of 30 percent. Required: 1. Calculate the after-tax cost of each method of financing. Enter your answers as decimal values rounded to three places. For example, 4.36% would be entered as ".044".

13 - 18.Does a shorter or a longer operating cycle indicate the efficiency of a business? what about for the cash conversion cycle? 19 - 22.When compared with last year, a company's inventory turnover increased. What positive situation might this reflect? 23 25.What is the incentive of management in computing efficiency ratios? 26 - 27. Total assets is 100,000. Total debt is 50,000. What is the debt-to-equity ratio? 28 29. (Average/Difficult) If the pro forna balance sheet shows that total asset increase by PHP400,000 while retaining a debt-equity ratio of .75 then: A. debt must increase by PHP300,000. B. equity must increase by the ful PHPH400,000. 920 C. debt must increase by PHP171,428. 4,012.0 18.284 0 D. equity must increase by PHP100,000. 30 – 34. What is a good capital structure? Are low debt ratios aiways favorable? 35 – 40. In starting a business, is it okay to siart with having debt during the early stages? What dictates the company's choice of leverage structure?

Calculating the degrees of leverage Acme Inc. forecasts the following income statement for the next year: Income Statement For the Year Ended on December 31 Net sales $960,000 Less: Variable costs 532,000 Less: Fixed costs 123,000 EBIT, or NOI $305,000 Less: Interest 196,000 EBT $109,000 Less: Taxes 43,600 Net income $65,400   Acme Inc. uses no preferred stock in its capital structure. Calculate the degrees of operating, financial, and total leverage for Acme Inc. and select your answers in the following table. DOL   1.40 or 1.64 or 1.72 or 1.81   DFL  1.88 or 2.02 or 2.18 or 2.80 DTL  3.40 or 3.48 or 3.57 or 3.93