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.

Baker Industries’s net income is $24,000, its interest expense is$5,000, and its tax rate is 40%. Its notes payable equals $27,000, long-term debt equals$75,000, and common equity equals $250,000. The firm finances with only debt and common equity, so it has no preferred stock. What are the firm’s ROE and 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?

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).

A company has an EPS of $2.40, a book value per share of$21.84, and a market/book ratio of 2.7$\times$. What is its P/E ration?

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?

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?

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?

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)?

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.

Ferrell Inc. recently reported net income of $8 million. It has 540,000 shares of common stock, which currently trades at$21 a share. Ferrell continues to expand and anticipates that 1 year from now, its net income will be $13.2 million. Over the next year, it also anticipates issuing an additional 81,000 shares of stock so that 1 year from now it will have 621,000 shares of common stock. Assuming Ferrell’s price/earnings ratio remains at its current level, what will be its stock price 1 year from now?

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?