Problem 4.08 – Precious Metal Mining
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition, 10th Edition, and 11th Edition
Given the sales, ROE, total asset turnover, and common equity… find the net income.
Given the sales, ROE, total asset turnover, and common equity… find the net income.
Given the reported information (net income, ROA, interest expense, accounts payable)… determine the basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC).
Calculate the price of a share of the company’s common stock given stockholders’ equity, the price/earnings ratio, the number of shares of stock, and the market/book ratio.
Given the sales, total assets, ROA, and ROE… calculate the profit margin and debt-to-capital ratio.
Given the assets, tax rate, BEP, and ROA… find the times-interest-earned (TIE) ratio?
Given the debt, interest rate, common stock, sales, tax rate, and profit margin… find the TIE ratio and return on invested capital (ROIC).
Given the ROE, debt-to-capital, interest charges, EBIT, sales, total asset turnover, and tax rate… find the company’s new return on equity.
Given the sales, net income, and balance sheet… find out how much the ROE will change and the firm’s new quick ratio.
Given the assets, basic earning power, interest rate, tax rate, and financing with debt… find the difference in ROE.
Which of the following statements is right? a. If a firm’s (BEP) is constant and exceeds the interest rate on its debt, adding assets and financing them with debt will raise the firm’s expected ROE.b. The higher the tax rate, the lower the BEP ratio.c. The greater the interest rate on a company’s debt, the…