Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 14, Problem 6CP
Scott Kelly is reviewing Master Toy’s financial statements to estimate its sustainable growth rate. Using the information presented in Table
a. Identify and calculate the components of the DuPont formula.b. Calculate the
c. Calculate the sustainable growth rate for
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Assets | ||
Current assets | ||
Case |
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Accounts receivable |
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Inventories |
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Prepaid expenses |
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Total current assets |
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Property, plant, equipment, net |
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Other |
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Total assets |
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Liabilities | ||
Current liabilities | ||
Notes payable to bank |
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Current poction of long-term debt |
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Accounts payable |
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Estimated income tax |
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Accrued expenses |
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Customer advance payment |
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Total current liabilities |
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Long-term debt |
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Other liabilities |
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Total liabilities |
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Shareholders’ equity | ||
Common stock
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Additional paid-in capital |
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Total shareholders’ equity |
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Total liabilities and shareholders’ equity |
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Net sales |
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Other income, net |
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Total revenues |
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Cost of goods sold |
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General administrative and marketing expenses |
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Interest expense |
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Total costs and expenses |
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Net income before tax |
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Income tax |
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Net income |
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Income statement | December 2017 | December 2018 | December 2019 |
Revenue |
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Cost of goods sold |
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Selling general and admin expense |
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Depreciation and amortization |
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Operating income (EBIT) |
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Interest expense |
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Income before taxes |
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Income taxes |
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Income after taxes |
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Diluted EPS |
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Average shares outstanding (OOO) |
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Financial statistics | December 2017 | December 2018 | December 2019 | 3-year Average |
COGS as % of sales |
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General & admin as % of sales |
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Operating margin (%) |
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Pretax income/EBIT (%) |
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Tax rate (%) |
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Balance sheet | December 2017 | December 2018 | December 2019 |
Cash and cash equivalents |
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Accounts receivable |
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Inventories |
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Net property, plant, and equipment |
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Total assets |
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Current liabllities |
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Total liabllities |
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Total liabllities and equity |
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Market price per share |
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Book value per share |
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Annual dividend per share |
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Expert Solution & Answer
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Check out a sample textbook solutionStudents have asked these similar questions
A company reports the following for the past year.
Sales
Income
Average assets
$ 11,680,000
5,256,000
29,200,000
The company's CFO believes that income for next year will be $6,832,800. Average assets will be the same as the past year.
1. Compute return on investment for the past year.
2. If the CFO's forecast is correct, what will return on investment be for next year?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute return on investment for the past year.
Numerator:
Return on Investment
/ Denominator:
=
Return on investment
=
calculate the efficiency ratios, liquidity ratios, leverage ratios, and profitability ratios for KPC Corporation for this year. Where data is available, also calculate ratios for last year. Use a 360-day year. All sales are on credit to business customers. Assume an income tax rate of 30 percent.
calculate the
• efficiency ratios,
• liquidity ratios,
• leverage ratios, and
• profitability ratios for KPC Corporation for this year. Where data is available, also calculate ratios for last year. Use a 360-day year. All sales are on credit to business customers. Assume an income tax rate of 30 percent.
Chapter 14 Solutions
Essentials Of Investments
Ch. 14 - Prob. 1PSCh. 14 - Prob. 2PSCh. 14 - The Crusty Pie Co., which specializes in apple...Ch. 14 - The ABC Corporation has a profit margin on sales...Ch. 14 - A company’s current ratio is 2. If the company...Ch. 14 - Cash flow from investing activities excludes:...Ch. 14 - Cash flow from operating activities includes:...Ch. 14 - Prob. 8PSCh. 14 - Prob. 9PSCh. 14 - Prob. 10PS
Ch. 14 - Prob. 11PSCh. 14 - Use the DuPont system and the following data to...Ch. 14 - A firm has an ROE of 3 , a debt/equity ratio of...Ch. 14 - A firm has a tax burden ratio of 0.75 , a leverage...Ch. 14 - A11 analyst gathers the following information...Ch. 14 - Here are data On two Firms: LO142 Equity ($...Ch. 14 - Prob. 1CPCh. 14 - Which of the following best explains a ratio of...Ch. 14 - Use the Financial statements for Chicago...Ch. 14 - Prob. 4CPCh. 14 - The information in the following table comes from...Ch. 14 - Scott Kelly is reviewing Master Toy’s financial...Ch. 14 - The DuPont formula defines the net return on...Ch. 14 - Go to finance.yahoo.com to find information about...Ch. 14 - Answer the following questions for these two toy...Ch. 14 - Prob. 3WM
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