Expert Answers

Problem
XYZ earned a net profit margin of 5% last year and had an equity multiplier of 2.8. If its total assets are $86 million and its sales are $184 million, what is the firm’s debt ratio? Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.

Problem
ABC’s balance sheet indicates a book value of shareholders’ equity of $742,049. The firm’s earnings per share is $3.50 and the price-earnings ratio is 11.82. If there are 43,418 shares outstanding, what is the market value per share? Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. Hint: Market value per share is same as market price per share.

Problem
XYZ has total sales of $202, assets of $93, return on equity of 22%, and net profit margin of 5%. What is the amount of equity? Enter you answer rounded off to two decimal points. Do not enter $ in the answer box.

Problem
Toast and Butter, Inc., has total assets of $712,000 and an equity multiplier of 1.6. What is the debt-equity ratio?

Problem
A firm has sales of $350,000, a profit margin of 6 percent, a total asset turnover rate of 1.25, and an equity multiplier of 1.4. What is the return on equity?

Problem
XYZ earned a net profit margin of 4% last year and had an equity multiplier of 2. If its total assets are $93 million and its sales are $198 million, what is the firm’s return on assets?

Problem
ABC Corporation has the following ratios: Total Asset Turnover = 1.6; Total debt to total assets = 0.5; Current Ratio = 1.7; Current Liabilities = $2,000,000; Sales = $16,000,000. What is the amount of current assets?

Problem
ABC’s Balance Sheet lists Current Assets of $300, Current Liabilities of $200, Fixed Assets of $700, Long-Term Debt of $400. ABC has 200 shares outstanding. What is the market-to-book ratio (MTB) if the market price per share is $8?

Problem
A firm has total assets of $682,000 and total equity of $424,000. What is the debt-equity ratio?

Problem
A firm has total equity of $70,312.50, a profit margin of 8 percent, an equity multiplier of 1.6, and a total asset turnover of 1.3. What is the amount of the firm’s sales?

Problem
Wexford Hotels has sales of $289,600, depreciation of $21,400, interest of $1,300, operating income of $23,269.70, and a tax rate of 34 percent. What is the times interest earned ratio?

Problem
Blackstone, Inc., has net income of $8,041, a tax rate of 22%, and interest expense of $580. What is the times interest earned ratio?

Problem
ABC’s balance sheet indicates a book value of shareholders’ equity of $782,852. The firm’s earnings per share is $3.20 and the price-earnings ratio is 12.05. If there are 48,412 shares outstanding, what is the book value per share?