Reference no: EM133122572

1.a) Jane Corp. had a net profit margin of 6% last year and an equity multiplier of 4.0. If its total assets are $250 million, what is the firm's return on equity? (3 points)

b). Excerpts of The Tree Ltd.'s financial results for the years ended December 31, 2019 and December 31, 2020 are as follows:

2020 2019

Total Current Assets $550,000 $710,000

Quick Assets $300,000 $450,000

Total Assets $920,000 $1,080,000

Total Current Liabilities $383,000 $300,000

Total Debt $790,000 $630,000

EBIT $660,000 $875,000

Interest Expense $40,700 $33,000

Net Income?

i). Assuming a corporate tax rate of 25%, what is the Net Income of the company for both years?

ii). What is the Working Capital and Acid Test Ratio of the company for both years?

iii). What is the Return on Assets for the company for both years?

iv). What is the Debt Ratio of the company for both years?

v). What is the TIE Ratio of the company for both years?

vi). Given the ratios calculated above, provide a brief analysis of your findings.