Tapley Dental Supply Company has the following data: Net income 240 Sales 10,000 Total assets 6,000 Debt ratio 75% TIE ratio 2 Current ratio 1.2 BEP ratio 13.33% If Tapley could streamline operations, cut operating costs, and raise net income to $300 without affecting sales or the balance sheet (the additional profits will be paid out as dividends), by how much would its ROE increase? (Ctrl) -

Tapley Dental Supply Company has the following data: Net income 240 Sales 10,000 Total assets 6,000 Debt ratio 75% TIE ratio 2 Current ratio 1.2 BEP ratio 13.33% If Tapley could streamline operations, cut operating costs, and raise net income to $300 without affecting sales or the balance sheet (the additional profits will be paid out as dividends), by how much would its ROE increase? (Ctrl) -

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Carla Vista Company is considering two alternatives. Alternative A will have revenues of $148.000 and costs of $104,200. Alternative Bwill have revenues of $188.000 and costs of $123.800. Compare Alternative A to Alternative B showing incremental revenues. costs, and net income. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses es (45)) Alternative Alternative B Net Income Increase (Decrease) Revenues Costs Net Income is better than 5 S
Consider the following income statement for Larry & Harry drug stores: Revenue - 90mm Variable costs- 48mm Interest on debt- 6mm Depreciation- 0 mm It’s tax rate is 25% and the book value of its equity is 150mm. What is L&H’s coverage ratio? A) 0.18 B) 5.25 C) 6 D) 7 E) 8 F)15
Problem 18-01Profit or Loss on New Stock Issue Security Brokers Inc. specializes in underwriting new issues by small firms. On a recent offering of Beedles Inc., the terms were as follows: Price to the public: $5 per share The number of shares: 3 million Proceeds to Beedles: $14,000,000 The out-of-pocket expenses incurred by Security Brokers in the design and distribution of the issue were $280,000. What profit or loss would Security Brokers incur if the issue were sold to the public at the following average price? $5.5 per share? Use a minus sign to enter loss, if any.$ $5.75 per share? Use a minus sign to enter loss, if any.$ $4.25 per share? Use a minus sign to enter loss, if any.$
Wims, Inc., has sales of $19.9 million, total assets of $14.9 million and total debt of $5.7 million. The profit margin is 12 percent. a. What is the company's net income? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) b. What is the company's ROA? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) C. What is the company's ROE? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) Net income a. b. ROA C. ROE % %
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Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 1.8. Its sales are $130 million and it has total assets of $50 million. What is its return on equity (ROE)? Do not round intermediate calculations. Round your answer to two decimal places
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?

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