Question: Calculate the Profit Margin, Return on Assets, and the Return on Equity. Discuss how you calculated these values. Per (common) share data: Earnings per share

 Calculate the Profit Margin, Return on Assets, and the Return on

Equity. Discuss how you calculated these values. Per (common) share data: Earnings

per share (EPS) Dividends per share (DPS) Book value per share (BVPS)

Calculate the Profit Margin, Return on Assets, and the Return on Equity. Discuss how you calculated these values.

Per (common) share data: Earnings per share (EPS) Dividends per share (DPS) Book value per share (BVPS) Market value (price) per share (MVPS) $ 6.335 $ 1.975 $19.745 $26.850 Garners' Platoon Mental Health Care, Inc. Current ratio Quick ratio Cash ratio Inventory turnover (sales) Days sales in inventory (sales) Average collection period Average payment period Fixed asset turnover Sales to working capital Total asset turnover Capital intensity Debt ratio Debt-to-equity Equity multiplier (common equity) Times interest earned Cash coverage Profit margin Gross profit margin Operating profit margin Basic earnings power ROA ROE Dividend payout Market-to-book ratio PE ratio Industry 2.00 times 1.20 times 0.25 times 2.50 times 146.00 days 91.00 days 100.00 days 1.25 times 4.00 times 0.50 times 2.00 times 50.00% 1.00 times 2.00 times 7.25 times 8.00 times 18.75% 49.16% 42.02% 19.90% 9.38% 18.75% 35.00% 1.30 times 4.10 times GARNERS' PLATOON MENTAL HEALTH CARE, INC. Balance Sheet as of December 31, 2018 (In millions of dollars) Assets Liabilities and Equity Current assets Current liabilities Cash and marketable securities $ 421 Accrued wages and taxes Accounts receivable 1,109 Accounts payable Inventory 1.760 Notes payable Total $ 3,290 Total Fixed assets Long-term debt Gross plant and equipment $ 5,812 Stockholders' equity Less: Depreciation 840 Preferred stock (30 million shares) Net plant and equipment $ 4,972 Common stock and paid-in surplus (200 million shares) Other long-term assets 892 Retained earnings Total $ 5,864 Total Total assets $ 9,154 Total liabilities and equity $ 316 867 872 $ 2,055 $ 3,090 $ 60 637 3,312 $ 4,009 $ 9,154 GARNERS' PLATOON MENTAL HEALTH CARE, INC. Income Statement for Year Ending December 31, 2018 (In millions of dollars) Net sales Less: Cost of goods sold Gross profits Less: Other operating expenses Earnings before interest, taxes, depreciation, and amortization (EBITDA) Less: Depreciation Earnings before interest and taxes (EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes Net income $ 4,980 2.246 $ 2,734 125 $ 2,609 200 $ 2,409 315 $ 2,094 764 $ 1,327 Less: Preferred stock dividends Net income available to common stockholders Less: Common stock dividends Addition to retained earnings $ 60 $ 1,297 395 $ 872 (continued) Per (common) share data: Earnings per share (EPS) Dividends per share (DPS) Book value per share (BVPS) Market value (price) per share (MVPS) $ 6.335 $ 1.975 $19.745 $26.850 Garners' Platoon Mental Health Care, Inc. Current ratio Quick ratio Cash ratio Inventory turnover (sales) Days sales in inventory (sales) Average collection period Average payment period Fixed asset turnover Sales to working capital Total asset turnover Capital intensity Debt ratio Debt-to-equity Equity multiplier (common equity) Times interest earned Cash coverage Profit margin Gross profit margin Operating profit margin Basic earnings power ROA ROE Dividend payout Market-to-book ratio PE ratio Industry 2.00 times 1.20 times 0.25 times 2.50 times 146.00 days 91.00 days 100.00 days 1.25 times 4.00 times 0.50 times 2.00 times 50.00% 1.00 times 2.00 times 7.25 times 8.00 times 18.75% 49.16% 42.02% 19.90% 9.38% 18.75% 35.00% 1.30 times 4.10 times

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