Suppose Rocky Brands has earnings per share of $2.35 and EBITDA of $31.4 million. The firm also has 5.9 millie shares outstanding and debt of $115 million (net of cash). You believe Jared's Outdoor Corporation is comparabl Rocky Brands in terms of its underlying business, but Jared's has no debt. If Jared's has a P/E of 13.3 and an en walue to EBITDA multiple of 7.5, estimate the value of Rocky Brands stock using both multiples. Which estimate i to be more accurate? Rocky Brands' stock value by using the P/E ratio is $ 31.26 per share. (Round to two decimal places.) The value of Rocky Brands by using the P/E ratio is $184.4 million. (Round to one decimal place.) The value of Rocky Brands by using the EBITDA ratio is $ million. (Round to one decimal place.)

You own another business with Assets on the books valued at $400,000. These assets were financed with Debt and Equity, where the D/E ratio was 3.0.  If the cost of debt capital was 7% and the cost of equity capital was 19%, then what was the WACC of the firm? This is what I came up with. Is it correct? [3.0 * 0.07 * (1-0)] + (3.0 * 0.19) [0.21] + 0.57 = 0.78 or 78%

Use the information below to build a properly formatted income statement. A: The firm has 12,640,500 shares outstanding and EPS is $3.20.Calculate  Net Income . B: The firm's corporate tax rate is 40%. Calculate the firm's EBT. C: After completing A and B above, what is the firm's corporate tax expense? D: The firm's  Revenue  is $183,600,000 and its operating margin is 45.00%. Calculate EBIT. E: After completing the above: Gross Profit  is 1.65 times its  EBIT . Calculate Gross Profit . F: Given the above information, calculate the firm's  Operating Expenses . G: Given the above information, calculate the firm's  Interest Expense .

Bunny Hip and Hop Brewery has $1,710,000 in assets and $661,000 of debt. It reports net income of $102,000 a. What is its ROA? (Do not round intermediate calculations, Round the final answer to 2 decimal places.) Return on assets b. What is the return on shareholders' equity? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Return on equity c. If the firm has an asset turnover ratio of 18 times, what is the profit margin? (Round the final answer to 2 decimal places) Profit margin

SodaFizz has debt outstanding that has a market value of $3 million. The company’s stock has a book value of $2 million and a market value of $6 million. What are the weights in SodaFizz’s capital structure?

Flimsy Safe Room’s, Inc. has total assets of $1,000,000.  The firm has $100,000 in inventory.  It has $300,000 in long-term debt and $400,000 in current assets.  The common stockholders’ equity is $400,000.  The firm does not have any preferred stock outstanding.  What is Flimsy Safe Room's total debt ratio defined as total liabilities to total assets?   Question 1 options:   A)  0.6 = 60%   B)  0.4 = 40%   C)  0.5 = 50%   D)  0.3 = 30%

Baker Industries' net income is $24,000, its interest expense is $4,000, and its tax rate is 25%. Its notes payable equals $24,000, long-term debt equals $75,000, and common equity equals $240,000. The firm finances with only debt and common equity, so it has no preferred stock. What are the firm's ROE and ROIC? Do not round intermediate calculations. Round your answers to two decimal places. ROE: ROIC: 10 Hide Feedback Partially Correct

Baker Industries' net income is $27,000, its interest expense is $5,000, and its tax rate is 25%. Its notes payable equals $26,000, long-term debt equals $75,000, and common equity equals $250,000. The firm finances with only debt and common equity, so it has no preferred stock. What are the firm's ROE and ROIC? Do not round intermediate calculations. Round your answers to two decimal places. ROE: ROIC: % %