Last year, Atlantic Richfield had sales of $325,000 and a ne…

Last year, Atlantic Richfield had sales of $325,000 and a net income of $25,200.  The firm finances using only debt and common equity, and total assets equal total invested capital.  Year-end assets were $250,000, and the firm’s debt ratio (total-debt-to-total-capital ratio) was 15%.  What was their ROE?    Your answer should be between 7.12 and 15.40, rounded to 2 decimal places, with no special characters.

Edelman Engines has $18 million in total assets. Its balance…

Edelman Engines has $18 million in total assets. Its balance sheet shows $2 million in current liabilities, $10 million in long-term debt, and $6 million in common equity. It has 300,000 shares of common stock outstanding, and its stock price is $31.80 per share. What is Edelman’s market/book (M/B) ratio? Your answer should be between 1.04 and 1.96, rounded to 2 decimal places, with no special characters.

The balance sheet of Colton Corporation shows long-term debt…

The balance sheet of Colton Corporation shows long-term debt of $50 million and shareholder equity of $50 million, while their income statement shows EBIT of $15.5 million and interest expenses of $5 million.  If Colton has a tax bracket of 40%, what is their return on equity (ROE)?   Your answer should be between 8.94 and 17.46, rounded to 2 decimal places, with no special characters.

Valero Energy’s balance sheet showed total current assets of…

Valero Energy’s balance sheet showed total current assets of $3,000, all of which were required in operations (i.e., no excess cash). Its current liabilities consisted of $895 of accounts payable, $600 of 6% short-term notes payable to the bank, and $250 of accrued wages and taxes. What was its net operating working capital (NOWC)?   Your answer should be between 1672 and 2027, rounded to even dollars (although decimal places are okay), with no special characters.

The assets of Dallas & Associates consist entirely of curren…

The assets of Dallas & Associates consist entirely of current assets and net plant and equipment. The firm has total assets of $2.5 million and net plant and equipment equals $2 million. It has notes payable of $150,000, long-term debt of $640,000, and total common equity of $1.5 million. The firm also has accounts payable and accruals of $100,000 on its balance sheet.  What is the company’s total debt? Your answer should be between 670,000 and 990,000, rounded to even dollars (although decimal places are okay), with no special characters.

Kobe Capital Corp. recently reported $19,500 of sales, $7,60…

Kobe Capital Corp. recently reported $19,500 of sales, $7,600 of operating costs other than depreciation, and $1,750 of depreciation. It had $9,000 of bonds outstanding that carry a 7.0% interest rate, and its income tax rate was 40%. How much was the firm’s earnings before taxes (EBT)?   Your answer should be between 8505 and 10280, rounded to even dollars (although decimal places are okay), with no special characters.