Use the information in the table below to calculate the missing items, each designated by an upper-case
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Question:
Use the information in the table below to calculate the missing items, each designated by an upper-case letter. Show your work below the table, identifying each calculation by letter).
For example, Harold's interest expense can be inferred from EBIT and Times interest earned, since TIE = EBIT / Interest expense.
A. Interest expense = EBIT/TIE
= 300,000/30
= 10,000
Harold | Manning | |
EBIT (Earnings before interest and taxes) | 300,000 | 190,000 |
Interest expense | A = 10,000 | 15,000 |
Net income | 200,000 | J |
Dividend payout ratio | 35% | K |
Retention ratio | 1-0.35=65% | 60% |
Dividends declared during the year | C | 40,000 |
Sales | 3,000,000 | L |
Average assets during the year | D | 1,500,000 |
Average debt during the year | 700,000 | M |
Average shareholders' equity during the year | 1,950,000 | N |
Asset turnover ratio | E | 1.3333 |
Debt ratio | F | 0.3333 = 1/3 |
Net profit margin | G | 0.05 |
Return on assets | 0.12 | O |
Return on equity | H | 0.10 |
Market price per share, beginning of year | 20 | P |
Market price per share, end of year | 15 | 20 |
Total shareholder return | I | 0.1556 |
Number of shares outstanding | 150,000 | 50,000 |
Times interest earned | 30 | Q |
Related Book For
Financial management theory and practice
ISBN: 978-1439078099
13th edition
Authors: Eugene F. Brigham and Michael C. Ehrhardt
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