DEBT TO CAPITAL RATIO Bartley Barstools has a market/book ratio equal to 1. Its stock price is $14 per share and it has 5 million shares outstanding, The firm's total capital is $125 million and it finances with only debt and common equity. What is its debt-to-capital ratio?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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DEBT TO CAPITAL RATIO Bartley Barstools has a market/book ratio equal to 1. Its stock price is $14 per share and it has 5 million shares outstanding, The firm's total capital is $125 million and it finances with only debt and common equity. What is its debt-to-capital ratio?
 
DUPONT ANALYSIS Doublewide Dealers has an ROA of 10%, a 2% profit margin, and an ROE of 15%. What is its total assets turnover? What is its equity multiplier?

MARKET/BOOK RATIO Jaster Jets has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding, and its stock price is $32 per share. What is Jaster's market/book ratio?

PRICE/EARNINGS RATIO A company has an EPS of $2.00, a book value per share of $20, and a market/book ratio of 1.2 x. What is its P/E ratio?



DUPONT AND ROE A firm has a profit margin of 2% and an equity multi- plier of 2.0. Its sales are $100 million, and it has total assets of $50 million. What is its ROE?



ROE AND ROIC Hilyard Industries's net income is $25,000, its interest expense is $5,000, and its tax rate is 40%. Its notes payable equals $25,000, long-term debt equals $75,000, and common equity equals $250,000. The firm finances with only debt and common equity, so it has no preferred stock. What are the firm's ROE and ROIC?


DUPONT AND NET INCOME Ebersoll Mining has $6 million in sales, its ROE is 12%, and its total assets turnover is 3.2x. Common equity on the firm's balance sheet is 50% of its total assets. What is its net income?
 
 
 
 
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