Calculate the profit margin-basic earnings power ratio

Assignment Help Financial Management
Reference no: EM131057781

Profitability Ratios Sue's Crops, Inc.'s 2013 income statement listed net sales = $100,000, EBIT = $20,000, net income available to common stockholders = $8,000, and common stock dividends = $2,000. The 2013 year-end balance sheet listed total assets = $400,000, and common stockholders equity = $300,000 with 3,000 shares outstanding. Calculate the profit margin, basic earnings power ratio, ROA, ROE, and dividend payout ratio.

Reference no: EM131057781

Questions Cloud

What is organisational structure and culture of organisation : What is the organisational structure and culture of this organisation? What are the organisational values and approaches regarding ethical practices
The value of firm under each of the two proposed plans : Gael Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 185,000 shares of stock outstanding. What is the value of the firm under each of the two pr..
Swott analysis on a company : 1. Perform a brief SWOTT analysis on a company of your choice as seen through the eyes of a marketing manager. 2. Justify some recommendations for overcoming factors that might impede progress of the organization and for taking advantage of factors..
Major functions of the tlm- input : 1. a. Consider the major functions of the TLM- input, process and output. Where do most of the firm's challenges fall? b. What are the team's goals for outputs?
Calculate the profit margin-basic earnings power ratio : Profitability Ratios Sue's Crops, Inc.'s 2013 income statement listed net sales = $100,000, EBIT = $20,000, net income available to common stockholders = $8,000, and common stock dividends = $2,000. The 2013 year-end balance sheet listed total assets..
Calculate the breakeven point : 1) Calculate the Breakeven point 2) Decide what Fox TT ought to do, Continue to Buy or put resources into the changeover and Make the circuit sheets. State which ought to happen, Make or Buy and clarify why.
Prepare a budget versus actual variance analysis : Prepare a budget versus actual variance analysis report for the end of March for the community services organisation Discoverer. They made an original assumption based on the respite manager's undertaking that a new food expense would be year to d..
Earnings before interest and taxes : Use the following information to answer questions 1-3Gail Corporation is comparing two different capital structures: an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 160,000 shares of stock outstanding. W..
Question regarding the capital investment project : What types of decisions would need to be made before the investment is made? Indicate the main kinds of information/data needed to evaluate this capital investment project.

Reviews

Write a Review

Financial Management Questions & Answers

  Required rate of return on equity for firm of risk level

The Cremmins Coat Company has recently completed a period of extraordinary growth, due to the popularity of its yellow jackets. Earnings per share have grown at an average compound annual rate of 15 percent, while dividends have grown at a 20 percent..

  What is the most expensive house you can afford

You want to buy a house and can afford a $15,000 down payment and a $1,000 monthly mortgage payment. If 30-year mortgage loans are available for a nominal rate of 3% per year with monthly compounding, what is the most expensive house you can afford?

  Strong form market efficiency

Strong form market efficiency: A. accurately reflects all information, both public and private B. only accurately reflects private information C. reflects only public information D. implies weak form market inefficiency E. implies semi-strong form ma..

  What is the real rate of return for t-bill

Assume that the inflation rate during the last year was 1.18 percent. US government T-bills had the nominal rates of return of 3.15 percent. What is the real rate of return for a T-bill? Round the answer to two decimal places in percentage form.

  Distribution of possible outcomes for projects estimated npv

Love Co. (a SWISS firm) is planning to invest CHF 2.5 million in a project in Denmark that will exist for one year. Its required rate of return on this project is 18%. It expects to receive cash flows of 2 million euros in one year from this project...

  Calculate call value of owens corning warrants

When Owens Corning emerged from bankruptcy in 2006, the debt holders became the sole owners of the company. But the old stockholders were not left entirely empty handed. They were given warrants to buy the new common stock at any point in the next se..

  What is your expected return on your investment

Suppose you have $10,000 in cash and you decide to borrow another $10,000 at a(n) 6% interest rate to invest in the stock market. You invest the entire $20,000 in an exchange-traded fund (ETF) with a 11% expected return and a 20% volatility. What is ..

  Daily volatilities of these two assets

Suppose that the daily volatilities of these two assets are 1.8% and 1.2% respectively, and that the coefficient of correlation between their returns is 0.6. What is the 10-day 97.5% VaR for the portfolio? By how much does diversification reduce the ..

  Expected annual return of portfolio

An investment advisor has recommended a $50,000 portfolio containing assets R, J, and K; $25,000 will be invested in asset R, with an expected annual return of 12 percent; $10,000 will be invested in asset J, with an expected annual return of 18 perc..

  Business are setting the price on a new service

Assume that manager of a business are setting the price on a new service. Relevant data estimates: variable cost per visit: $5.00, Annual direct fixed costs: $500,000, Annually overhead allocation: $50,000, Expected annual utilization 10,000 visits i..

  Risk-free rate have to for two stocks to correctly priced

Stock Y has a beta of .9 and an expected return of 12.6 percent. Stock Z has a beta of .6 and an expected return of 8.9 percent. What would the risk-free rate have to be for the two stocks to be correctly priced?

  Create schedule showing cash inflows-outflows of this fund

Craig and LaDonna Allen are trying to establish a college fund for their son Spencer, who just turned three today. They plan for Spencer to withdraw $10000 on his eighteenth birthday and $11000, $12000, and $15000 on his subsequent birthdays. Create ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd