Using the dupont formula determine the profit margin

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Question 1

Doug just received a settlement from a lawsuit that pays him $125,000 immediately, followed by amounts of $125,000 at the end of each year over the next 10 years with one exception - lawyer fees reduce the amount in Year 3 to $75,000. However, the lawsuit allows Doug to receive the equivalent present value today. Using an interest rate of 6.5%, which of the following comes closest to the equivalent present value?

a. $1,200,000

b. $ 666,666

c. $ 982,211

d. $ 898,604

e. $ 857,145

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2 Using the DuPont formula. determine the profit margin, investment turnover. and rate of return on investment for each division

3 If managements minimum acceptable rate of return is 10 percent. determine the residual income for each division

Question: 3 Riot Company issued $394,000, 15-year, 6% bonds at 97.Prepare the journal entry to record the sale of these bonds on January 1, 2014. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Suppose the remaining Discount on Bonds Payable was $7,092 on December 31, 2019. Show the balance sheet presentation on this date.

Queston:4 The King Arts Company has a return-on- assets ratio of 5 percent.
A- if the debt-to-total assets ratio is 20 percent, what is the return on equity?
B- if the firm had no debt, what would the return-on-equity ratio be?

Question:5 A stock is expected to pay a dividend of $3.00 at the end of the year (i.e., D1 = $3.00), and it should continue to grow at a constant rate of 10% a year. If its required return is 15%, what is the stock's expected price 1 years from today? Round your answer to two decimal places. Do not round your intermediate calculations.

Question :6At the end of the year, overhead applied was $3,272,961. Actual overhead was $3,742,718. Closing over/under applied overhead into cost of goods sold would cause net income to increase/decrease by?

Reference no: EM131115670

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