The Bedding Division of Homestore Corporation had sales of $9,000,000 and operating income of $1,620,000 last year. The total assets of the Bedding Division were $2,500,000, while current liabilities were $310,000. Homestore Corporation's target rate of return is 11%, while its weighted average cost of capital is 9%. The effective tax rate for the company is 25%. What is the Bedding Division's capital turnover? O A. 29 OB. 3.6 O C. 8.1 OD. 5.6

For 2021, Gourmet Kitchen Products reported $24 million of sales and $18 million of operating costs (including depreciation). The company has $15 million of total invested federal-plus-state income tax rate was 25%. What was the firm's economic value added (EVA), that is, how much value did management add to stockholders' example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. $ capital. Its after-tax cost of capital is 9% and its wealth during 2021? Write out your answer completely. For

Maverick Technologies has sales of $3,000,000.  The company’s fixed operating costs total $500,000 and its variable costs equal 60% of sales, so the company’s current operating income is $700,000.  The company’s interest expense is $492,284.  What is the company’s degree of financial leverage (DFL)?

Zorn Corporation is deciding whether to pursue a restricted or relaxed working capital investment policy. The firm's annual sales are expected to total $2,520,000, its fixed assets turnover ratio equals 4.0, and its debt and common equity are each 50% of total assets. EBIT is $150,000, the interest rate on the firm's debt is 10%, and the tax rate is 40%. If the company follows a restricted policy, its total assets turnover will be 2.5. Under a relaxed policy its total assets turnover will be 2.1. If the firm adopts a restricted policy, how much lower would its interest expense be than under the relaxed policy? Do not round intermediate calculations. a. $19,200 b. $11,520 c. $9,600 d. $5,760 e. $4,800

Delta Products recently reported $4,250,000 of sales, $3,200,000 of operating costs other than depreciation, and $250,000 of depreciation. The company had $750,000 of outstanding bonds that carry a 4.25% interest rate, and its federal-plus-state income tax rate was 35%. In order to sustain its operations and thus generate sales and cash flows in the future, the Delta Products spent $350,000 to buy new fixed assets and to invest $75,000 in net operating working capital. How much free cash flow did Delta Products generate?

All-Canadian, Ltd. is a multiproduct company with three divisions: Pacific Division, Plains Division, and Atlantic Division. The company has two sources of long-term capital: debt and equity. The interest rate on All-Canadian’s $400 million debt is 9 percent, and the company’s tax rate is 30 percent. The cost of All-Canadian’s equity capital is 12 percent. Moreover, the market value of the company’s equity is $600 million. (The book value of All-Canadian’s equity is $430 million, but that amount does not reflect the current value of the company’s assets or the value of intangible assets.) The following data (in millions) pertain to All-Canadian’s three divisions. Compute the economic value added (or EVA) for each of the company's three divisions. (Do not round intermediate calculations. Enter your final answers in dollars and not millions.)

Wandel Inc. has $5,000,000 outstanding of 8 percent preferred stock; the company has a 40 percent tax rate. What is the after-tax cost of the preferred stock?     and if  Wandel Inc. has forecasted sales of $300,000.   The firm's fixed operating costs total $75,000 and its variable operating costs are equal to 70% of this sales level. The company needs to pay $12,000 in interest each period. Its tax rate is 40% and it has 10,000 shares.  a)   Compute the earnings before interest and taxes (EBIT) for a sales level of $300,000 b)   Compute Earnings after taxes and compute the EPS for that sales level.

Zorn Corporation is deciding whether to pursue a restricted or relaxed working capital investment policy. The firm's annual sales are expected to total $4,620,000, its fixed assets turnover ratio equals 4.0, and its debt and common equity are each 50% of total assets. EBIT is $109,000, the interest rate on the firm's debt is 10%, and the tax rate is 40%. If the company follows a restricted policy, its total assets turnover will be 2.5. Under a relaxed policy its total assets turnover will be 2.2. Assume now that the company believes that if it adopts a restricted policy, its sales will fall by 15% and EBIT will fall by 10%, but its total assets turnover, debt ratio, interest rate, and tax rate will all remain the same. In this situation, what's the difference between the projected ROES under the restricted and relaxed policies? Do not round intermediate calculations. a. 1.27 p.p. b. 0.85 p.p. c. 1.04 p.p. d. 1.75 p.p. e. 0.90 p.p.