Use the following information for Smith Brothers, Inc: EBIT / Revenue 15.00% Government Tax Rate 35.00% Revenue / Assets 1.80 times Current Ratio 2.40 times EBT / EBIT 0.80 times Assets / Equity 1.90 times Smith Brothers, Inc.'s return on assets (ROA) is closest to:
Q: Metallica Bearings, Incorporated, is a young start-up company. No dividends will be paid on the…
A: Dividend discount model (DDM) is used to detrmine the intrinsic price of the stock after discounting…
Q: ompany aaa wishes to give each 25 employees a christmas bonus how much is needed to invest monthly…
A: The future value of money includes the amount needed is amount that is being deposited and amount of…
Q: What is financial repression and why does it exist?
A: Financial repression is the phrase used to describe policies used by governments to funnel money…
Q: Lorenzo and Carlotta have three children (ages 5, 6, and 14), Lorenzo earned $36,000 in 2020.…
A: Given: In this question, the given details are Lorenzo and Carlotta have three children ( ages 5, 6…
Q: STRICTLY USE THE GIVEN FORMULA IN THE PHOTO ATTACHED 1. How much must a man deposit in a bank that…
A: As there is more compounding than the effective interest rate would be more and future value would…
Q: Melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or Four Rivers…
A: The compound interest adds the interest earned in a period to the principal because of which more…
Q: Jack owns a shop that sells furniture. He placed an advertisement in the Friday’s edition of the…
A: Brief summary 1. Jack owns a furniture shop and placed an advertisement in the Friday’s edition of…
Q: XYZ Limited has just paid a dividend of $1.54. It expects dividends to grow at 28%, 24% and 18%…
A: Last dividend = $1.54 Growth rate after year 3 (g) = 0.08 Required return (r) = 0.15 Share price;…
Q: Marginal Incorporated (MI) has determined that its after-tax cost of debt is 9.0%. Its cost of…
A: A firm will have to switch from the internal accruals to external equity if the internal accruals…
Q: As an innovative way to pay for various software packages, a new high-tech service company has…
A: Different streams of payments have been given. We have to find the one that's most beneficial from…
Q: 5) Consider a retirement savings account where the monthly contribution is $125 for the first 10…
A: Monthly contribution for first 10 years is $125 Monthly contribution for next 25 years is $225…
Q: The Johnson Family borrowed $3,000 for 18 months at 4% interest. What is the total payback on the…
A: Future value refers to the value of the current asset at some future rate on the basis of…
Q: Massy Store makes a $10,500 investment at Republic Bank Ltd on January 1, 2019. At the end of…
A: Future Value refers to the compounded value of a single cash flow received today or multiple cash…
Q: Metallica Bearings, Incorporated, is a young start-up company. No dividends will be paid on the…
A: Value of the stock at the end of 9 years = D10(r-g) Where, D10 is dividend per share 10 years from…
Q: ces Both Bond Sam and Bond Dave have 8 percent coupons, make semiannual payments, and are priced at…
A: The bond is a debt instrument where a firm takes out a loan (bond price) in return for repayments of…
Q: If you were in early 2021with the once-in-a-generation low interest rate environment, and the rates…
A: There are three possible options to mortgage. We have to choose the one that is best suited to us.
Q: In 2021, a standard 30-year fixed mortgage in the US could be had for somewhere around 3%. Following…
A: Formula's Used:
Q: Western Gold Property Development Company is refurbishing a 200-unit condominium complex at a cost…
A: Initial cost = $1,875,000 Annual cash flow = $415,350 Period = 7 years
Q: Question 6 If Php10,568 is the proceeds obtained after Php13,500 is discounted for 10 months, what…
A: Solution:- Discount rate means the annual percentage rate which is used for providing a discount. We…
Q: (1+r)" or P = F(1+i) -n a) Find the present value of P8,000 due in four years at semi-annually b)…
A: The present value is the equivalent value today of the future money based on the time and interest…
Q: What type of firm generally has the highest proportion of fixed assets to total assets? a)…
A: The fixed assets are the long-term tangible assets like plant machines, equipment building, etc that…
Q: You are financing a car worth $29509.88 with tax included. Interest rates are 7.6% compounded daily.…
A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…
Q: don't understand the written solution
A: 1) Beta measures the systematic risk of a stock Beta = correlation coeffecient of stock with…
Q: Which factor(s) lead to the difference of the interest between T-bill and a short-term corporate…
A: The T-bill is the debt instrument used by the government to raise capital. It has a maturity of one…
Q: pose Jack, president of Heart Limited has hired you to advise on the firm’s cost of capital. (a)…
A: Cost of debt has advantages of tax deductions and the debt interest are operating expenses and have…
Q: Which of the following statement is wrong? Group of answer choices a)the coupon rate of a newly…
A: a) Coupon rate on abond is the stated interest rate. it means that the invrstors will get a definite…
Q: Find out the 1- standard deviation 2- variance weight Investment*expected return stock weight…
A: Standard deviation The standard deviation of an investment refers to the level of risk associated…
Q: An 11-year maturity zero-coupon bond selling at a yield to maturity of 5.75% (effective annual…
A: Bond price is the sum of interest payments and maturity value discounted at yeild to maturity Bond…
Q: McCabe Corporation is expected to pay the following dividends over the next four years: $15, $12,…
A: The current share price can be determined using the dividend growth model which considers the…
Q: Stock in Road Pave Zambia has a beta of .85. The market risk premium is 8 percent, and the Bank of…
A: Data given: Beta=0.85 Market risk premium =8 % Risk free rate = 5% (Zambia treasury bills are…
Q: What is a bond? What are some features of a bond? How do you value bonds? What factors can affect…
A: Bond is one of the most used debt instruments that are used both by private and government…
Q: The Lee family is buying a new 3,500-square-foot house in Muncie, Indiana, and will borrow $237,100…
A: The periodic payment is the equal amount of payment at regular intervals. The periodic payment…
Q: The beneficiary of a life insurance policy is to receive $2000 a year for 5 years, the first payment…
A: Value of the annuity at the time of the death is calculated as the present value of annuity due…
Q: The Ting Hai effect is a Hong Kong stock market phenomenon in which there is a sudden and…
A: Market efficiency- According to market efficiency theory, price of a stock reflects all available…
Q: Janlea Co. had total net earnings of $158,600 this past year and paid out 60 percent of those…
A: Required return = (D1/ Current market price)+Growth rate D1 = Dividend per share Dividend per share…
Q: You are called in as a financial analyst to appraise the bonds of Olsen's Clothing Stores. The…
A: To Find: Price of the bond
Q: What is the real interest rate if the nominal interest rate is 3% and inflation is 2%?
A: Inflation rate will be the part of real interest rate. Inflation rate means increase in prices which…
Q: A firm's stock has a market capitalization of 520 million and an equity beta of 1.05. Bonds issued…
A: The capital asset pricing model is a tool used in finance to estimate an asset's necessary rate of…
Q: Two years ago, KenCorp purchased an asset that is classified with a 3-year recovery depreciation…
A: Data given: Asset purchased 2 years ago classified with a 3-year recovery period. Depreciation…
Q: Find the interest rate per conversion period (i) and the total conversion periods (n) at the end of…
A: Several instances of annual interest rates being compounded at various frequencies have been given.…
Q: Prepare two estimates of Pearson’s cost of common equity using the dividend growth model where you…
A: Given: In this question, the given details are Here, using the given dividend growth model where you…
Q: Madrid Company has provided the following data (ignore income taxes): 2000
A: Information Provided: Revenues = $77,500 Net Income = $33,900 Dividend declared and paid = $5700…
Q: A Zambian company has a bond outstanding that sells for 87 percent of its K100,000 par value. The…
A: As per Bartleby guidelines, If multiple questions are posted, only the first 1 question will be…
Q: Which of the following bonds is trading at a premium? a two-year bond with a $50,000 face value…
A: a) 1) If coupon rate is greater than Yield to maturity, then bond is trading at Premium 2) If coupon…
Q: valuate three commonly used approaches to quantifying financial risks. Not satisfied with the first…
A: Risk management is the process of assessing risk and based upon the assessment, develop strategies…
Q: The following information relates to three potential investment projects that are being considered…
A: Project A Project B Project C Initial cost £ 1,75,000.00 £ 1,95,000.00 £…
Q: What is the present value of $1,400 a year at a discount rate of 8 percent if the first payment is…
A: Annual payment (P) = $1400 Discount rate (r) = 8% Number of annual payments (n) = 25 First payment…
Q: Which is riskier lower IRR or a higher IRR? Please explain and incorporate differences in risk based…
A: According to the internal rate of return (IRR) rule, a project or investment should be undertaken if…
Q: The ABC corporation issues a 4% coupon bond that matures on June 30, 2032. You are talking to the…
A: Bonds are paid annual coupon payment periodically based on the agreed rate of interest on the bond.…
Q: You are trying to plan your investments for the next year. You have decided that the market will…
A: Expected Return , Standard deviation (volatility) and covariance is calculated using the below…
Use the following information for Smith Brothers, Inc:
EBIT / Revenue | 15.00% |
Government Tax Rate | 35.00% |
Revenue / Assets | 1.80 times |
Current Ratio | 2.40 times |
EBT / EBIT | 0.80 times |
Assets / Equity | 1.90 times |
Smith Brothers, Inc.'s
14.04%.
14.82%.
24.71%.
26.68%.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Use the following information for Cronos Group, Inc. (CRON): EBIT / Revenue 25.50% Government Tax Rate 42.50% Revenue / Assets 1.95 times Current Ratio 3.15 times EBT / EBIT 0.80 times Assets / Equity 2.00 times Its interest coverage ratio is closest to: A. 2.50. B. 5.00. C. 7.15. D. 9.25.From the following information for BlueInks Corporation, compute the rate of return on assets. Hint: The numerator is income before interest expense and taxes. Net income $40,878 Total assets at beginning of year $250,100 Total assets at end of year $158,680 a. 15% b. 25% c. 16% d. 20%Q9: You have the following data :Operating income 30,000 ID, interest revenue 5,000 ID, interest on notes and bonds 20,000 ID, rental revenue 15,000 ID, bank exp. 10,00O ID, dividends received 5,000 ID, So what * ?is the net profit before tax
- Required: Compute the following: (For Requirements 1 to 4, enter your percentage answers rounded to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) 1. Gross margin percentage. 2. Net profit margin percentage. 3. Return on total assets. 4. Return on equity. 5. Was financial leverage positive or negative for the year? 1. Gross margin percentage % 2. Net profit margin percentage % 3. Return on total assets % 4. Return on equity % 5. Financial LeverageYou are given the following information for Smashville, Inc. Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: Current liabilities: Cash: Long-term debt: Other assets: Fixed assets: Other liabilities: Investments: Operating assets: Gross margin Operating margin Return on assets Return on equity $174,000 $ 1,400 $379,000 $ 86,000 $ 7,400 8,000 $ % % % % 40% $ 21,000 $ 21,000 $ 46,000 $ 38,000 $130,000 Calculate the gross margin, the operating margin, return on assets, and return on equity. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) $ 3,000 $ 34,000 $ 64,000Use the following information to answer this question. Total assets Total current liabilities Total expenses Total liabilities Total revenues Tax rate $150,000 105,000 70,000 110,000 80,000 40% After -tax cost of capital 12% Invested capital is defined as total assets less total liabilities. (round your answers te one decimal ) Capital turnover equal O A) 53.3% B) 2 OC) 6.7% D) 28.6%
- Your emall WIII be recorded when you Supmit this fOTm zSg/formResponse?pli=1 * Required Assume that Dillards Inc. reported operating income of $5.2 million, $1.75 million in other income and gains (except equity earnings), $3.65 million in other expenses and losses, and a tax rate of 40%. 1. Using the information given above for Dillards Inc, what is the net income of the company? * A) $5.2 million B) $3.3 million C) $1.98 million D) $1.32 million E) None of the aboveAmir Company’s net income and net sales are $18,000 and $1,100,000, respectively,and average total assets are $100,000. What is Amir’s return on assets?a. 20.0%b. 18.0%c. 3.7%d. 7.0%1. ValleMiramar has the following data: Net sales, P1.8 M; Costs of Goods Sold , P 1.08; Operating Expenses, P 315,000; Earning’s before interests and profit, P405,000; Net income, P195,000; Total Stockholders’ Equity P.75M; Total Assets P 1M. . The return on investment is: a. 22.5% b. 26.5% c. 19.5% d. 40.5% 2. Refer to no. 1 the debt. and operating ratio are a. .25 and .775 c. .25 and .175 b. .75 and .775 d. .75 and .175 3. Extracts from the balance sheet ( 000,000 ) of A Co. as follows: Current Assets Merchandise Inventory P 77.1 Accounts Receivable 50.1 Cash on Hand and in 85.0 Creditors: Amounts falling due within one year 70.2 Bank Overdraft Other Creditors…
- Margaret O'Flaherty, a portfolio manager for MCF Investments, is considering investing in Alpine Chemical 7% bonds, which mature in 10 years. She asks you to analyze the company to determine the riskiness of the bonds. Alpine Chemical Company Financial Statements Years Ended December 31, ($ in millions) 20X1 20X2 20X3 20X4 20X5 20X6 Assets Cash $ 55 $ 1,637 2,021 190 $ 2,143 1,293 157 249 $ 1,394 1,258 3,493 1,322 Accounts receivable 3,451 1,643 2,087 Inventories 945 Other current assets 17 27 55 393 33 171 5,097 6,181 Current assets 3,114 5,038 2,543 2,495 3,986 5,757 3,138 3,865 2,707 5,619 2,841 2,778 5,265 4,650 2,177 2,473 Gross fixed assets 7,187 3,893 3,465 2,716 Less: Accumulated depreciation Net fixed assets 2,619 3,294 Total assets $6,338 $5,609 $5,485 $6,605 $7,813 $8,559 Liabilities and net worth Notes payable Accounts payable $1,300 338 $ 525 2$ 750 $1,750 $1,900 673 638 681 743 978 Accrued liabilities 303 172 359 359 483 761 Current liabilities 1,501 1,985 1,997 1,457…Below is financial information ($ values are in millions) in a model. Net income during the year for this company would be: Revenues SG&A Expenses Interest Expense Select one: OA. $4.5 million OB. $3.6 million O C. $16.6 million OD. $0.9 million $67.30 $4.70 $8.10 Cost of Goods Sold Depreciation Tax Rate $43.20 $6.80 20%Ecare Berhad has the following income statement items for 2021: Revenue/Sales RM4,801,139 Finance costs/Interest expense RM293,938 Other items of income RM38,552 Cost of sales (COGS) RM3,917,144 Income tax expenses 35% of taxable income Dividend payment 40% of net profit What is the amount of the firm's earning before tax? Select one: a. RM628,609 b. RM590,057 c. RM408,596 d. RM883,995