You also know that the outstanding debt has been constant over the past few years. 2021 2022 Assets 1500 Debt 1000 ◆ 1602.41 1000 Equity 500 602.41 Sales 300 357.0 COSTS(incl DA) 57.0 67.83 EBIT 243.0 289.17 Interest 110.0 110.0 EBT 133.0 179.17 Taxes 30.59 41.21 EAT 102.41 137.96 1. Find the leverage ratio in 2022: 2. Find the asset turnover for 2022:
You also know that the outstanding debt has been constant over the past few years. 2021 2022 Assets 1500 Debt 1000 ◆ 1602.41 1000 Equity 500 602.41 Sales 300 357.0 COSTS(incl DA) 57.0 67.83 EBIT 243.0 289.17 Interest 110.0 110.0 EBT 133.0 179.17 Taxes 30.59 41.21 EAT 102.41 137.96 1. Find the leverage ratio in 2022: 2. Find the asset turnover for 2022:
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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Question
Some parts of the balance sheet and income statement of PaintsWorld Enterprises is given below.
You know that the effective tax rate is 23.0% and the interest rate the company pays on its long-term debt is 11.0%.
You also know that the outstanding debt has been constant over the past few years.
1.Find the leverage ratio in 2022:
2. Find the asset turnover for 2022:
Transcribed Image Text:Some parts of the balance sheet and income statement of PaintsWorld Enterprises is given below.
You know that the effective tax rate is 23.0% and the interest rate the company pays on its long-term debt is 11.0%.
You also know that the outstanding debt has been constant over the past few years.
2021 2022
Assets 1500
Debt 1000
Equity 500
Sales 300
COSTS(incl DA) 57.0
◆
1602.41
1000
602.41
357.0
67.83
EBIT 243.0 289.17
Interest 110.0 110.0
EBT 133.0 179.17
Taxes 30.59 41.21
EAT 102.41 137.96
1. Find the leverage ratio in 2022:
2. Find the asset turnover for 2022:
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