Not use ai solution please given answer general Accounting A firm's after-tax operating income was $1,050,000 and after-tax interestexpense was $250,000 in 2013. It started the year with $5,050,000 in equityfinancing, $3,050,000 in long-term debt, and total assets of $10,050,000. Itended the year with $5,500,000 in equity financing, $4,050,000 in long-term debt, and $12,050,000 in total assets. The additional capital raisedduring 2013 started to affect the operating income in 2014. What is thereturn on assets for 2013?

Step 1: Define Return on AssetsThe return on Assets ratio can be defined as a profitability metric…

Answered: A firm's after-tax operating income was…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter2: Financial Statements, Cash Flow, And Taxes

Section: Chapter Questions

Problem 12P

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Home depot entered fiscal 2017 with a total capitalization of $21,940 million. In 2017 debt investors received interest income of $889 million. Net income to shareholders was $8690 million (assume a tax rate of 21%) calculate the economic value added assuming its cost of capital is 10%
Home Depot entered fiscal 2017 with a total capitalization of $21,904 million. In 2017, debt investors received interest income of $877 million. Net income to shareholders was $8,654 million. (Assume a tax rate of 21%.) Calculate the economic value added assuming its cost of capital is 10%. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
In 2016, the Allen Corporation had sales of $61 million, total assets of $43 million, and total liabilities of $15 million. The interest rate on the company's debt is 5.8 percent, and its tax rate is 35 percent. The operating profit margin is 14 percent. a. Compute the firm's 2016 net operating income and net income. b. Calculate the firm's operating return on assets and return on equity. (Hint: You can assume that interest must be paid on all of the firm's liabilities.)
In 2016, the Allen Corporation had sales of $62 million, total assets of $47 million, and total liabilities of $19 million. The interest rate on the company's debt is 5.9 percent, and its tax rate is 35 percent. The operating profit margin is 14 percent. a) Compute the firm's 2016 net operating income and net income. b) Calculate the firm's operating return on assets and return on equity.
For the next fiscal year, you forecast net income of $48,100 and ending assets of $504,000. Your firm's payout ratio is 9.6%. Your beginning stockholders' equity is $298,000 and your beginning total liabilities are $119,700. Your non-debt liabilities such as accounts payable are forecasted to increase by $9,700. Assume your beginning debt is $109,800. What amount of equity and what amount of debt would you need to issue to cover the net new financing in order to keep your debt- equity ratio constant? Please show work. The amount of equity to issue will be... The amount of debt to issue will be...
For the next fiscal year, you forecast net income of $49,400 and ending assets of 506,900. Your firm's payout ratio is 10.6 %. Your beginning stockholders' equity is $299,600, and your beginning total liabilities are $128,200. Your non-debt liabilities such as accounts payable are forecasted to increase by $10,500. Assume your beginning debt is $108,200. What amount of equity and what amount of debt would you need to issue to cover the net new financing in order to keep your debt-equity ratio constant?
The Malia Corporation had sales in 2015 of $65 million, total assets of $42 million, and total liabilities of $20 million. The interest rate on the company's debt is 6 percent, and its tax rate is 30 percent. The operating profit margin was 12 percent. What were the company's operating profits and net income? What was the operating return on assets and return on equity? Assume that interest must be paid on all of the debt.
Tibbs Inc. had the following data for the year ending 12/31/12: Net income = $400; Net operating profit after taxes (NOPAT) = $450; Total assets = $2,600; Short-term investments = $200; Stockholders' equity = $1,600; Total debt = $1,000; and Total operating capital = $2,200. What was its return on invested capital (ROIC)? Group of answer choices 14.32% 22.50% 16.36% 20.45% 18.41%
In 2016, the Allen Corporation had sales of $60 million, total assets of $47 million, and total liabilities of $22 million. The interest rate on the company's debt is 5.6%, and its tax rate is 35%. The operating profit margin is 12%. Compute the firm's 2016 net operating income and net income. Calculate the firm's operating return on assets and return on equity. (Hint: You can assume that interest must be paid on all of the firm's liabilities.)
Barnes' Brothers has the following data for the year ending 12/31/12: Net income = $500; Net operating profit after taxes (NOPAT) = $850; Total assets = $3,000; Short-term investments = $100; Stockholders' equity = $2,000; Total debt = $700; and Total operating capital = $3,000. Barnes' weighted average cost of capital is 17.1%. What is its economic value added (EVA)? (Round your answer to 2 decimal places.)
For the next fiscal year, you forecast net income of $51,300 and ending assets of $505,400. Your firm's payout ratio is 9.9%. Your beginning stockholders' equity is $299,200 and your beginning total liabilities are $120,500. Your non-debt liabilities such as accounts payable are forecasted to increase by $10,000. Assume your beginning debt is $104,400. What amount of equity and what amount of debt would you need to issue to cover the net new financing in order to keep your debt-equity ratio constant? The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. The amount of equity to issue will be $ 9,898. (Round to the nearest dollar.) The amount of debt to issue will be $. (Round to the nearest dollar.)
Barnes' Brothers has the following data for the year ending 12/31/12: Net income = $550; Net operating profit after taxes (NOPAT) = $650; Total assets = $2,700; Short-term investments = $100; Stockholders' equity = $2,000; Total debt = $750; and Total operating capital = $2,300. Barnes' weighted average cost of capital is 11%. What is its economic value added (EVA)? Group of answer choices $357.30 $317.60 $397.00 $436.70 $277.90

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