Emma Corporation reports the following numbers:

Total sales $4,000,000
Invested capital $1,000,000
Net operating profit less adjusted taxes $200,000
Net operating profit $260,000
Interest expense $100,000
Lease expense $200,000
Total long-term debt $1,200,000
Total Assets $3,000,000
Market price per share $142
Earnings per share $9
Book value per share $20

Questions
1. What is Emma’s return on invested capital?
2. What is Emma’s capital turnover ratio?
3. What is Emma’s net operating profit less adjusted taxes return on sales?
4. What is Emma’s times interest earned ratio?
5. What is Emma’s fixed charge coverage ratio?
6. What is Emma’s long-term debt to total assets ratio?
7. What is Emma’s price to earnings ratio?
8. What is Emma’s price to book value ratio?

Answer rating: 100% (QA)

SOLUTION 1 Emmas return on invested capital ROIC is calculated as Net Operating Profit Less Adjusted ... View the full answer