Answer the questions below based on the following information. The tax rate is 35%, and all dollars are in millions. Assume that the companies have no liabilities other than the debt shown below. Suunto Incorporation Runrun Corporation Earnings before interest and taxes $ 280 $ 294 Debt (at 10% interest) Equity $ 140 $ 840 $ 560 $ 210 a. Calculate each company's ROE, ROA, and ROIC. b. Why is Runrun's ROE higher than Suunto's? Does this mean Runrun is a better company? Why or why not? c. Why is Suunto's ROA higher than Runrun's? What does this tell you about the two companies? d. How do the two companies' ROICS compare? What does this suggest about the two companies?

Answer the questions below based on the following information. The tax rate is 35%, and all dollars are in millions. Assume that the companies have no liabilities other than the debt shown below. Suunto Incorporation Runrun Corporation Earnings before interest and taxes $ 280 $ 294 Debt (at 10% interest) Equity $ 140 $ 840 $ 560 $ 210 a. Calculate each company's ROE, ROA, and ROIC. b. Why is Runrun's ROE higher than Suunto's? Does this mean Runrun is a better company? Why or why not? c. Why is Suunto's ROA higher than Runrun's? What does this tell you about the two companies? d. How do the two companies' ROICS compare? What does this suggest about the two companies?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 64P: Albion Inc. provided the following information for its most recent year of operations. The tax rate...

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Answer the following questions based on the information in the table. Assume a tax rate of 30 percent. For simplicity, assume that the companies have no other liabilities other than the debt shown. (All dollars are in millions.) \table[[,\table[[Atlantic],[Corporation]],Pacific],[Earnings before interest and taxes,$470,$470
Samuel Corp. provides the following information: EBIT = $386.50 Tax (TC ) = 21% Debt = $700 RU = 10% Question: What is the value of Samuel’s equity?
am. 103.
1
Assume you are given the following relationships for the Haslam Corporation: Sales/total assets 1.9 Return on assets (ROA) 3% Return on equity (ROE) 5% Calculate Haslam's profit margin and liabilities-to-assets ratio. Do not round intermediate calculations. Round your answers to two decimal places. Profit margin: % Liabilities-to-assets ratio: % Suppose half of its liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places.
You are given the financial information for the Unic Company: Earnings Before Interest and Tax (EBIT) = $126.58 Corporate tax rate (TC) = 0.21 Debt (D) = $500 Unlevered cost of capital (RU) = 0.20 The cost of debt capital is 10 percent. Question: Determine the value of Unic Company equity? Determine the cost of equity capital for Unic Company? Determine the WACC for Unic Company?
Q9: You have the following data :Operating income 30,000 ID, interest revenue 5,000 ID, interest on notes and bonds 20,000 ID, rental revenue 15,000 ID, bank exp. 10,00O ID, dividends received 5,000 ID, So what * ?is the net profit before tax
a)Assume that the following data is extracted from the financial statements of Richy-Rich bank: equity is $350 million, interest expense is $115 million, provision for loan loss (P) is $35 million, noninterest income is $30 million, noninterest expense is $50 million and a tax rate is 33%. What is the minimum total interest income required to give a return on equity (ROE) of 20%? Show workings when necessary. b) Be-smart Bank reported an equity multipler ratio of 6.5 at the end of year 2021. If the bank’s total debt at the end of year 2021 was $5 million, how much of its assets were financed with equity? Show calculations when necessary. c) What are the main sources of funding for commercial banks? Using bullet points, classify these sources and briefly describe each category.
Please give me the Correct answer
vv. Subject :- Finance
Give only typing answer with explanation and conclusion Byron Books Inc. recently reported $18 million of net income. Its EBIT was $34.3 million, and its tax rate was 25%. What was its interest expense? (Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $18 million of net income by (1 - T) = 0.75 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.) Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. Do not round intermediate calculations.
(MORNING) AC corporation earns $4.30 per share before taxes. The corporate tax rate is 35%, the personal tax rate on dividends is 20%, and the personal tax rate on non-dividend income is 39%. What is the total amount of taxes paid if the company pay $2.00 dividend? This questuon: 10 polniS) possibie O A. $2.29 O B. $2.67 OC. $1.91 O D. $1.52 O Time Remaining: 00:50:30 Next O tv MacBook Air DII DD 80 F12 F9 F10 F11 esc F5 F6 F7 F8 F1 F2 F3 F4 @ $ & delete %3D 1 2 4 7 { Y U P Q W E tab J K = - .. .. - *