Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN: 9781337902571
Author: Eugene F. Brigham, Joel F. Houston
Publisher: Cengage Learning
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Textbook Question
Chapter 4, Problem 11P
RATIO CALCULATIONS Assume the following relationships for the Caulder Corp.:
| Sales/Total assets | 1.3× |
| 4.0% | |
| 8.0% |
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RATIO CALCULATIONS Assume the following relationships for the Brauer Corp.:Sales/Total assets 1.5xReturn on assets (ROA) 3.0%Return on equity (ROE) 5.0%Calculate Brauer’s profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital.
1. The Wilson Corporation has the following relationships:Sales/Total assets 2.0Return on assets (ROA) 4.0%Return on equity (ROE) 6.0%What is Wilson’s profit margin and debt ratio?
Calculate the following ratios based on the balance sheet, income statement and cash flow prepared in question
ROE
Return on Capital Employed (post-tax)
Net Profit Margin
EBITDA Margin
Effective Tax Rate
Operating Cost Ratio
Gross Profit Margin
Total Asset Turnover Ratio
Fixed Asset Turnover Ratio
Receivables Turnover Ratio
Leverage Ratio [Avg. Total Assets / Avg. Total Equity]
FCF / EBITDA
Interest Coverage Ratio
Debt Service Coverage Ratio
Basic EPS (Assume Face Value of each share is INR 10)
Debt : Equity Ratio
Income Statement (INR Cr)
Units
Mar/14
Saleable Units
4,570
Revenues
Gross Revenues
INR Cr
2,116
Less: Environment Cess
INR Cr
5
Net Revenues
INR Cr
2,121
Growth (%)
-1.9%
Expenses
O&M Expenses (% of Project Costs)
INR Cr
146
YoY Escalation
5.72%
EBITDA
INR Cr
1,974
Margin (%)
93.1%
Book Depreciation
INR Cr
439
Interest Expenses
INR…
Chapter 4 Solutions
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Ch. 4 - Financial ratio analysis is conducted by three...Ch. 4 - Prob. 2QCh. 4 - Over the past year, M.D. Ryngaert Co. had an...Ch. 4 - Profit margins and turnover ratios vary from one...Ch. 4 - How does inflation distort ratio analysis...Ch. 4 - If a firms ROE is low and management wants to...Ch. 4 - Give some examples that illustrate how (a)...Ch. 4 - Prob. 8QCh. 4 - Suppose you were comparing a discount merchandiser...Ch. 4 - Prob. 10Q
Ch. 4 - Differentiate between ROE and ROIC.Ch. 4 - Prob. 12QCh. 4 - DAYS SALES OUTSTANDING Baxley Brothers has a DSO...Ch. 4 - DEBT TO CAPITAL RATIO Kayes Kitchenware has a...Ch. 4 - DuPONT ANALYSIS Hendersons Hardware has an ROA of...Ch. 4 - MARKET/BOOK AND EV/EBITDA RATIOS Edelman Engines...Ch. 4 - PRICE/EARNINGS RATIO A company has an EPS of 2.40,...Ch. 4 - DuPONT AND ROE A firm has a profit margin of 3%...Ch. 4 - ROE AND ROIC Baker Industriess net income is...Ch. 4 - DuPONT AND NET INCOME Precious Metal Mining has 17...Ch. 4 - Prob. 9PCh. 4 - M/B, SHARE PRICE, AND EV/EBITDA You are given the...Ch. 4 - RATIO CALCULATIONS Assume the following...Ch. 4 - Prob. 12PCh. 4 - TIE AND ROIC RATIOS The W.C Pruett Corp. has...Ch. 4 - RETURN ON EQUITY Pacific Packagings ROE last year...Ch. 4 - RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has...Ch. 4 - Prob. 16PCh. 4 - CONCEPTUAL: RETURN ON EQUITY Which of the...Ch. 4 - TIE RATIO MPI Incorporated has 6 billion in...Ch. 4 - CURRENT RATIO The Stewart Company has 2,392,500 in...Ch. 4 - DSO AND ACCOUNTS RECEIVABLE Ingraham Inc....Ch. 4 - P/E AND STOCK PRICE Ferrell Inc. recently reported...Ch. 4 - Prob. 22PCh. 4 - RATIO ANALYSIS Data for Barry Computer Co. and its...Ch. 4 - DuPONT ANALYSIS A firm has been experiencing low...Ch. 4 - Prob. 25SPCh. 4 - Prob. 26ICCh. 4 - CONDUCTING A FINANCIAL RATIO ANALYSIS ON HP INC....Ch. 4 - CONDUCTING A FINANCIAL RATIO ANALYSIS ON HP INC....Ch. 4 - CONDUCTING A FINANCIAL RATIO ANALYSIS ON HP INC....Ch. 4 - CONDUCTING A FINANCIAL RATIO ANALYSIS ON HP INC....
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