Question: Two firms have sales of 1 million each Other financial
Two firms have sales of $1 million each. Other financial information is as follows:
What are the operating profit margins and the net profit margins for these two firms? What are their returns on assets and on equity? Why are they different?
Answer to relevant QuestionsIf a firm has the following sources of finance, Current liabilities....... $100,000 Long-term debt....... 350,000 Preferred stock....... 75,000 Common stock....... 225,000 Earns a profit of $35,000 after taxes, and pays ...Firm A had the following selected items on its balance sheet: Cash....................... $ 28,000,000 Common stock ($50 par; 2,000,000 shares outstanding).. 100,000,000 Additional paid-in ...An investor with a required return of 14 percent for very risky investments in common stock has analyzed three firms and must decide which, if any, to purchase. The information is as follows: a. What is the maximum price ...a. A $1,000 bond has a 7.5 percent coupon and matures after 10 years. If current interest rates are 10 percent, what should be the price of the bond? b. If after six years interest rates are still 10 percent, what should be ...Big Oil Inc. has a preferred stock outstanding that pays a $9 annual dividend. If investors’ required rate of return is 13 percent, what is the market value of the shares? If the required return declines to 11 percent, ...
Post your question