Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Textbook Question
Chapter 2, Problem 4P
Table P2.4 shows financial statements for Apple Computer Corporation. The closing stock
- (a) Debt ratio
- (b) Times-interest-earned ratio
- (c) Current ratio
- (d) Quick (acid-test) ratio
- (e) Inventory-turnover ratio
- (f) Dav's-sales-outstandine
- (g) Total-assets turnover ratio
- (h) Profit margin on sales
- (i) Return on total assets
- (j) Return on common equity
- (k) Price/earnings ratio
- (l) Book value per share
TABLE P2.4 Financial Statements far Apple Computer (All numbers in thousands)
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The following table shows the total return and the number of funds for four categories of mutual funds.
Excel File: data03-17.xlsx
Type of Fund Number of Funds Total Return (%)
Domestic Equity 9,191 4.65
International Equity 2,621 18.15
Specialty Stock 1,419 11.36
Hybrid 2,900 6.75
a. Using the number of funds as weights, compute the weighted average total return for these mutual funds. (to 2 decimals)
b. Is there any difficulty associated with using the "number of funds" as the weights in computing the weighted average total return in part (a)? Discuss. What else might be used for weights?
(i) Using "number of funds" as weights will only be a good approximation if the amount invested in various funds is approximately equal. The amount invested in each fund could be used for weights.
(ii) Using "number of funds" as weights results in a good approximation regardless of the amount invested in various funds. There is no need to use a different weight.
(iii) Using "number of…
ECONOMICS
At the end of 2011 Home Depot's total capitalization amounted to $29,031 million. In 2012 debt investors received interest income of $648 million. Net income to shareholders was $4,487 million. (Assume a tax rate of 35%.) Calculate the economic value added assuming its cost of capital is 10%. (Do not round intermediate calculations. Give your answer in millions rounded to 2 decimal places.)
The following data are taken from the financial statements
of Wildhorse Co. The data are in alphabetical order.
Accounts payable $27,800
Net sales
$526,000
Accounts
Other current
$72,500
$22,500
receivable
liabilities
Average common
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$23,000
$7,500
shares out.
wages payable
Stockholders'
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$57,550
$146,400
equity
Gross profit
$170,000 Total assets
$305,000
Net income
$ 46,000
Compute the following:
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b. Working capital.
c. Earnings per share.
Chapter 2 Solutions
Contemporary Engineering Economics (6th Edition)
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