Problem 8 (Ratio Calculations) Assume the following relationships for Woody Corp: Sales/Total assets is. 1.5 x, ·Return on assets (ROA) is 3.0%, and Return on equity (ROE) is 5.0%. Calculate Woody Corp. profit margin and debt-to-assets ratio assuming the firm uses only debt and common equity. Problem 9 (Ratio Calculations) Giselle Company has P12 billion in assets, and its tax rate is 40%. Its basic earning power (BEP) ratio is 15%, and its return on assets (ROA) is 5%. What is its times- interest-earned (TIE) ratio?

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Problem 8 (Ratio Calculations)
Assume the following relationships for Woody Corp: Sales/Total assets is. 1.5 x,
Return on assets (ROA) is 3,0%, and Return on equity (ROE) is 5.0%. Calculate
Woody Corp. profit margin and debt-to-assets ratio assuming the firm uses only
debt and common equity.
Problem 9 (Ratio Calculations)
Giselle Company has P12 billion in assets, and its tax rate is 40%. Its basic earning
power (BEP) ratio is 15%, and its return on assets (ROA) is 5%. What is its times-
interest-earned (TIE) ratio?
Transcribed Image Text:Problem 8 (Ratio Calculations) Assume the following relationships for Woody Corp: Sales/Total assets is. 1.5 x, Return on assets (ROA) is 3,0%, and Return on equity (ROE) is 5.0%. Calculate Woody Corp. profit margin and debt-to-assets ratio assuming the firm uses only debt and common equity. Problem 9 (Ratio Calculations) Giselle Company has P12 billion in assets, and its tax rate is 40%. Its basic earning power (BEP) ratio is 15%, and its return on assets (ROA) is 5%. What is its times- interest-earned (TIE) ratio?
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