Firm ABC had operating profits of $100,000, a 25% tax rate, interest expense of $22,000, and preferred dividends of $6,000 What was the firm's net profit after taxes? $39,000 O $58,500 O $49,200 $44,000

Firm ABC had operating profits of $100,000, a 25% tax rate, interest expense of $22,000, and preferred dividends of $6,000 What was the firm's net profit after taxes? $39,000 O $58,500 O $49,200 $44,000

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

Section: Chapter Questions

Problem 1PS

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What was the firm's net income if the firm paid income taxes of $2,000 and the average tax rate was 25%, O A. $1,000 B. $6,000 O c. $8000 O D. $7,000
Two firms have sales of $1.4 million each. Other financial information is as follows: Firm A B EBIT $ 340,000 $ 340,000 Interest expense 20,000 80,000 Income tax 45,000 15,000 Debt 1,990,000 410,000 Equity 1,450,000 2,040,000 What are the operating profit margins and the net profit margins for these two firms? Round your answers to two decimal places. Operating profit margins: Firm A: % Firm B: % Net profit margins: Firm A: % Firm B: % What are their returns on assets and on equity? Round your answers to two decimal places. Return on assets: Firm A: % Firm B: % Return on equity: Firm A: % Firm B: %
A company has $20 billion of sales and $1 billion of net income. Its total assets are $10 billion. The company’s total assets equal total invested capital, and its capital consists of half debt and half common equity. The firm’s interest rate is 5% and its tax rate is 40%. Use this as a guide for computing EBIT (work up the firm's income statement): EBIT Less: Interest EBT Less: Taxes Taxes (40%) Net Income Question: What is its ROIC?
Use the information below to build a properly formatted income statement. A: The firm has 25,280,000 shares outstanding and its earnings per share is $2.40. Calculate Net Income. B: The firm's corporate tax rate is 40%. Calculate the firm's EBT. C: After completing A and B above, what is the firm's corporate tax expense? D: The firm's operating income is 1.80 times its Net Income. Determine the firm's EBIT. E: Given your answer to D, calculate the firm's Interest Expense. F: After completing the above: Gross Profit is 18.00 times its Interest Expense. Calculate Gross Profit. G: Finally, the firm's Revenue is 1.50 times its EBIT. Calculate the firm's Revenue. INSTRUCTIONS: Write ratios involving dollar amounts out to the penny, with no dollar sign: 1000.00. All ratios and interest rates should be calculated as follows: 11.28 (no percent sign) For this problem: Net Income = Earnings before Taxes = Тах еxpens 3 Earnings before Taxes & Interest = Interest expense = Gross profit = Revenue =
Tom Inc. report a $30million of net income. its EBIT is 50millions, the flat tax rate is 25%? What was its interest expense (in million)?
Broward Manufacturing recently reported the following information: Net income ROA BEP: 26.73 Interest expense $102,120 Accounts payable and accruals $950,000 Broward's tax rate is 25%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, and 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC). Do not round intermediate calculations. Round your answers to two decimal places. ROE: 73.60 ROIC: 44.55 % % $276,000 % 8%
Use the information below to build a properly formatted income statement. A: The firm has 12,640,500 shares outstanding and EPS is $3.20.Calculate Net Income . B: The firm's corporate tax rate is 40%. Calculate the firm's EBT. C: After completing A and B above, what is the firm's corporate tax expense? D: The firm's Revenue is $183,600,000 and its operating margin is 45.00%. Calculate EBIT. E: After completing the above: Gross Profit is 1.65 times its EBIT . Calculate Gross Profit . F: Given the above information, calculate the firm's Operating Expenses . G: Given the above information, calculate the firm's Interest Expense .
Soy sauce company ABC has operating profits of Rp. 100 million, taxes of Rp. 17 million, interest expense of Rp. 34 million, and preferred dividends of Rp. 5 million. What is ABC net profit after taxes?
Mars Corporation has Revenues of $50 million, Tax Expense of $5 million, total Other Expenses of $15 million, and Net Income of $30 million. What is Mars Corporation's income tax RATE? 25.0% 10.0% 14.3% 16.7%

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