Broward Manufacturing recently reported the following information: $$ \begin{matrix} \text{Net income} & \text{\$ 615.000}\\ \text{ROA} & \text{10\\%}\\ \text{Interest expense} & \text{\$ 202.950}\\ \text{Accounts payable and accruals} & \text{\$ 950.000}\\ \end{matrix} $$ Broward’s tax rate is 30%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, and 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC).

You are given the following information: Stockholders’ equity as reported on the firm’s balance sheet =$6.5 billion, price earnings ratio =9, common shares outstanding =180 million, and market/book ratio =2.0. Calculate the prie of a share of the company's common stock.

Answer the following question.

Precious Metal Mining has 17 million dollars in sales, its ROE is 17 percent, and its total assets turnover is $3.2 \times$. Common equity on the firm's balance sheet is 50 percent of its total assets. What is its net income?

A firm has a profit margin of 3% and an equity multiplier of 1.9. Its sales are $150 million, and it has total assets of$60 million. What is its ROE?

Henderson’s Hardware has an ROA of 11%, a 6% profit margin, and an ROE of 23%. What is its total assets turnover? What is its equity multiplier?

Edelman Engines has $17 billion in total assets. Its balance sheet shows$1.7 billion in current liabilities, $10.2 billion in long-term debt, and$5.1 billion in common equity. It has 300 million shares of common stock outstanding, and its stock price is $20 per share. What is Edelman’s market/book ratio?

Assume the following relationships for the Caulder Corp.: $$ \begin{matrix} \text{Sales/Total assets} & \text{1.3 }{\times}\\ \text{Return on assets (ROA)} & \text{4.0\\%}\\ \text{Return on equity (ROE)} & \text{8.0\\%}\\ \end{matrix} $$ Calculate Caulder’s profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital.

Thomson Trucking has $16 billion in assets, and its tax rate is 40%. Its basic earning power (BEP) ratio is 10%, and its return on assets (ROA) is 5%. What is its times-interest-earned (TIE) ratio?

The W.C. Pruett Corp. has $600,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 7%. In addition, it has$600,000 of common stock on its balance sheet. It finances with only debt and common equity, so it has no preferred stock. Its annual sales are $2.7 million, its average tax rate is 35%, and its profit margin is 7%. What are its TIE ratio and its return on invested capital (ROIC)?

Kaye’s Kitchenware has a market/book ratio equal to 1. Its stock price is $12 per share and it has 4.8 million shares outstanding. The firm’s total capital is$110 million and it finances with only debt and common equity. What is its debt-to-capital ratio?

Baxley Brothers has a DSO of 23 days, and its annual sales are $3,650,000. What is its accounts receivable balance? Assume that it uses a 365-day year.

Duval Manufacturing recently reported the following information:

$$\begin{array}{lr}\text { Net income } & \$ 600,000 \\ \text { ROA } & 8 \% \\ \text { Interest expense } & \$ 225,000 \\ \text { Accounts payable and accruals } & \$ 1,000,000\end{array}$$

Duval's tax rate is $35 \%$. Duval finances with only debt and common equity, so it has no preferred stock. $40 \%$ of its total invested capital is debt, and $60 \%$ of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC).

Precious MetalMining has $17 million in sales, its ROE is 17$\times$. Common equity on the firm’s balance sheet is 50% of its total assets. What is its net income?

Nintendo Company, Ltd., recently reported the following financial information (amounts in millions). Compute Nintendo’s current ratio and profit margin. Round to two decimals.

Current assets          $9,036     Net sales$4,464
Total assets             11,477     Net income          146
Current liabilities         871