Profitability and Asset Management Ratios You are thinking of investing in Tikki's Torches, Inc. You have only the following information on the firm at year-end 2018: net income = $680,000, total debt = $13.8 million, debt ratio = 43%. What is Tikki's ROE for 2018? Multiple Choice 4.93% 11.47% 2.12%% 3.72%

Using ROI and RI to evaluate investment centers Consider the following condensed financial statements of Secure Life, Inc. The company's target rate of return is 12%. SECURE LIFE, INC. Comparative Balance Sheet As of December 31, 2021, and 2020 2021 2020 Assets Cash $ 82,000 $ 50,000 Accounts Receivable 54,000 20,500 Supplies 1,000 500 Property, Plant, and Equipment, net 275,000 180,000 Patents, net 138,000 99,000 Total Assets $ 550,000 $ 350,000 Liabilities and Stockholders' Equity Accounts Payable $ 40,000 $ 32,000 Short-term Notes Payable 135,000 45,000 Long-term Notes Payable 170,000 125,000 Common Stock, no Par 150,000 130,000 Retained Earnings 55,000 18,000 Total Liabilities and Stockholders' Equity $ 550,000 $ 350,000

Consider a simple firm that has the following market-value balance sheet: Assets Liabilities end equity $1 040 Debt Equity $400 640 Next year, there are two possible values for its assets, each equally likely: $1 180 and $960. Its debt will be due with 4.9% interest. Because all of the cash flows from the assets must go to either the debt or the equity, if you hold a portfolio of the debt and equity in the same proportions as the firm's capital structure, your portfolio should earn exactly the expected return on the firm's assets. Show that a portfolio invested 38% in the firm's debt and 62% in its equity will have the same expected return as the assets of the firm. That is, show that the firm's pre-tax WACC is the same as the expected return on its assets. If the assets will be worth $1 180 in one year, the expected return on assets will be %. (Round to one decimal place.)

You are given the following information on Kaleb's Heavy Equipment: Profit margin Capital intensity Debt-equity ratio Net income Dividends 18 $70,000 $ 15,200 Sustainable growth rate A Calculate the sustainable growth rate. (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Problem solve this problem