You say current profitability is satisfactory

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Reference no: EM132044526

1. Find the acid-test ratio for Salazar's Subs if their balance sheet currently shows $8,240 in cash, $340 in accounts receivable, $588 in accounts payable, and $2,670 in wages payable, along with $230 in merchandise and $6,510 in mortgage and long-term loans.

2. You are brought in as a consultant to a company. You calculate its WACC to be 6%. Its operating profit is 10 million, tax rate is 33%, total assets are 105 mm, cash is 5mm and non- interest bearing liabilities are 0. If you present to the CEO would you say current profitability is satisfactory? Show with a ratio?

Reference no: EM132044526

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