Please work Step by Step: Here's selected information from a company's financial statements (problems 1-6): Revenue $200,000 Current Assets $100,000 Costs of goods $100,000 Fixed Assets $300,000 Gross Profit $100,000 Long term debt $150,000 Operating Expenses $70,000 Stockholder Equity $200,000 Operating Profit $30,000 WACC 10% Interest $10,000 Cost of equity 9% Pretax profit $20,000 Taxes $4000 Net Income $6000 1. If depreciation is 60% of operating expenses, capital expenditures are $50,000, and there is no change in net working capital, what is the company's FCFF? 2. If depreciation is 60% of operating expenses, capital expenditures are $50,000, net new debt is $40,000 and there is no change in net working capital , what is the company's value based on FCFE if you assume constant growth of 4%? 3. What is return on assets? 4. What is return on equity? 5. What is return on invested capital? 6. What is economic value added? 7. Heres some info for a company: Total asset turnover = 3.0 Total liabilities = $50,000,000 Coverage ratio = 4.0 Profit margin = 5% Stockholders equity = $10,000,000 What is the companys net income? A. $4.5 million D. $9 million B. $6 million E. $12 million C. $8 million 8. Heres some info for a company: Total assets = $50,000,000 Total liabilities = $20,000,000 Profit margin = 5% Return on equity = 20% What is the companys total asset turnover? A. 1.2 D. 2.0 B. 1.50 E. 2.4 C. 1.6 Heres some info for a company: Sales = $20 million Total asset turnover = 2.5X Profit margin = 5% Leverage ratio = 2.0 9. What is the companys return on equity? A. 10% D. 25% B. 12% E. 40% C. 20% Heres some info for a company: Total assets = $50,000,000 Fixed assets = $45,000,000 Net working capital = $1,000,000 Profit margin = 5% Sales = $40,000,000 10. What is the companys current ratio? A. 1.0 D. 2.0 B. 1.25 E. 2.5 C. 1.5 Heres some info for a company: Total assets = $50,000,000 Debt ratio = .40 Net income = $3,600,000 Sales = $120,000,000 11. What is the companys return on equity? A. 12% D. 20% B. 15% E. 24% C. 18% Heres some info for a company: Total assets = $50,000,000 Fixed assets = $44,000,000 Current ratio = 2 Profit margin = 5% Sales = $40,000,000 Stockholders equity = $10,000,000 12. What is the companys net working capital? A. $1 million D. $5 million B. $2.5 million E. $7.5 million C. $3 million Answers 1. $16,000 2. $998,400 3. 7.5% 4. 3% 5. 8.57% 6. -$8750 7. D 8. E 9. D 10. B 11. A 12. C