Ch. 1: Question 3 (Concepts Review and Critical Thinking Questions section)
What is the primary disadvantage of the corporate form of organization? Name at least two advantages of corporate organization.
Ch. 2: Question 4 (Questions and Problems section): Microsoft® Excel® template provided for Problem 4.
Suppose the firm in Problem 3 had 90,000 shares of common stock outstanding. What is the earnings per share, or EPS, figure? What is the dividends per share figure?
Question 4
Input area:
Sales
Costs
Depreciation expense
Interest expense
Tax rate
Cash dividends
Shares outstanding
Output area:
Income Statement
Sales $-
Costs -
Depreciation expense -
EBIT $-
Interest expense -
EBT $-
Taxes (0%) -
Net income $-
Addition to retained earnings $-
Earnings per share #DIV/0!
Dividends per share #DIV/0!
Ch. 3: Question 4 (Question and Problems section)
The Green Corporation has ending inventory of $417,381, and cost of goods sold for the year just ended was $4,682,715. What is the inventory turnover? The days’ sales in inventory? How long on average did a unit of inventory sit on the shelf before it was sold?
Ch. 4: Question 6 (Questions and Problems section): Microsoft® Excel® template provided for Problem 6.
The most recent financial statements for Schenkel Co. are shown here:
C:\Users\miche\Documents\p117-04.jpg
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. What is the internal growth rate?
Chapter 4
Question 6
Input area:
Sales Current assets Debt
Costs Fixed assets Equity -
Taxable income $- Total $- Total $-
Taxes -
Net income $-
Payout ratio
Tax rate
Output area:
Return on assets #DIV/0!
Retention ratio 100%
Internal growth rate #DIV/0!