Kaye's Kitchenware has a market/book ratio equal to 1. Its stock price is $12 per share and it has 4.8 million shares outstanding. The firm's total capital is $130 million and it finances with only debt and common equity. What is its debt-to-capital ratio? Round your answer to two decimal places.

2: Problem 4.06 (DuPONT and ROE)

A firm has a profit margin of 4.5% and an equity multiplier of 2.8. Its sales are $430 million, and it has total assets of $215 million. What is its ROE? Do not round intermediate calculations. Round your answer to two decimal places.

3: Problem 4.08 (DuPONT and Net Income)

Precious Metal Mining has $14 million in sales, its ROE is 14%, and its total assets turnover is 3.2. Common equity on the firm's balance sheet is 80% of its total assets. What is its net income? Do not round intermediate calculations. Round your answer to the nearest cent.

4: Problem 4.12 (Ratio Calculations)

Thomson Trucking has $21 billion in assets, and its tax rate is 25%. Its basic earning power (BEP) ratio is 10%, and its return on assets (ROA) is 6.25%. What is its times-interest-earned (TIE) ratio? Round your answer to two decimal places.

5: Problem 4.14 (Return on Equity)

Pacific Packaging's ROE last year was only 3%, but its management has developed a new operating plan that calls for a debt-to-capital ratio of 60%, which will result in annual interest charges of $893,000. The firm has no plans to use preferred stock, and total assets equal total invested capital. Management projects an EBIT of $1,444,000 on sales of $19,000,000, and it expects to have a total assets turnover ratio of 2.3. Under these conditions, the tax rate will be 25%. If the changes are made, what will be the company's return on equity? Do not round intermediate calculations. Round your answer to two decimal places.

6: Problem 4.19 (Current Ratio)

The Stewart Company has $1,059,500 in current assets and $476,775 in current liabilities. Its initial inventory level is $296,660, and it will raise funds as additional notes payable and use them to increase inventory. How much can its short-term debt (notes payable) increase without pushing its current ratio below 2.0? Round your answer to the nearest dollar.

7: Problem 5.07 (Present and Future Values of a Cash Flow Stream)

An investment will pay $150 at the end of each of the next 3 years, $200 at the end of Year 4, $400 at the end of Year 5, and $550 at the end of Year 6. If other investments of equal risk earn 10% annually, what is its present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent.

Present value:$ __

Future value:$ __

8: Problem 5.19 (Future Value of an Annuity)

Your client is 31 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $5,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 9% in the future.

1. If she follows your advice, how much money will she have at 65? Do not round intermediate calculations. Round your answer to the nearest cent.

$

1. How much will she have at 70? Do not round intermediate calculations. Round your answer to the nearest cent.

$

1. She expects to live for 20 years if she retires at 65 and for 15 years if she retires at 70. If her investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after retirement at each retirement age? Do not round intermediate calculations. Round your answers to the nearest cent.

Annual withdrawals if she retires at 65:$____

Annual withdrawals if she retires at 70:$____

9: Problem 5.25 (Future Value of an Annuity)

Find the future values of the following ordinary annuities:

1. FV of $800 paid each 6 months for 5 years at a nominal rate of 15% compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent.

$

1. FV of $400 paid each 3 months for 5 years at a nominal rate of 15% compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent.

$

1. These annuities receive the same amount of cash during the 5-year period and earn interest at the same nominal rate, yet the annuity in part b ends up larger than the one in part a. Why does this occur? -Select-The nominal deposits into the annuity in part (b) are greater than the nominal deposits into the annuity in part (a).The annuity in part (a) is compounded less frequently; therefore, more interest is earned on previously-earned interest.The annuity in part (a) is compounded more frequently; therefore, more interest is earned on previously-earned interest.The annuity in part (b) is compounded less frequently; therefore, more interest is earned on previously-earned interest.The annuity in part (b) is compounded more frequently; therefore, more interest is earned on previously-earned interest.Item 3

10: Problem 5.26 (PV and Loan Eligibility)

You have saved $5,000 for a down payment on a new car. The largest monthly payment you can afford is $500. The loan will have a 12% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? For 60 months? Do not round intermediate calculations. Round your answers to the nearest cent.

Financed for 48 months: $ __________

Financed for 60 months: $___________

11: Problem 6.02 (Real Risk-Free Rate)

You read inThe Wall Street Journalthat 30-day T-bills are currently yielding 4.7%. Your brother-in-law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums:

• Inflation premium = 3.50%
• Liquidity premium = 0.5%
• Maturity risk premium = 2.30%
• Default risk premium = 2.60%

On the basis of these data, what is the real risk-free rate of return? Round your answer to two decimal places.

_________%

12: Problem 6.06 (Inflation Cross-Product)

An analyst is evaluating securities in a developing nation where the inflation rate is very high. As a result, the analyst has been warned not to ignore the cross-product between the real rate and inflation. If the real risk-free rate is 3% and inflation is expected to be 8% each of the next 4 years, what is the yield on a 4-year security with no maturity, default, or liquidity risk? (Hint: Refer to"The Links Between Expected Inflation and Interest Rates: A Closer Look".) Round your answer to two decimal places.

_______%