34.
Market Value Ratios Bree’s Tennis Supply’s market-to-book ratio is currently 9.4 times
and PE ratio is 20 times. If Bree’s Tennis Supply’s common stock is currently selling at
$20.50 per share, what is the book value per share and earnings per share?
35.
Market Value Ratios Tina’s Track Supply’s market–to-book ratio is currently 4.5 times and
PE ratio is 10.5 times. If Tina’s Track Supply’s common stock is currently selling at $100
per share, what is the book value per share and earnings per share?
36.
DuPont Analysis If Epic, Inc. has an ROE = 25 percent, equity multiplier = 4, a profit
margin of 12 percent, what is the total asset turnover ratio?
37.
DuPont Analysis If Apex, Inc. has an ROE = 10 percent, equity multiplier = 3, and profit
margin of 5 percent, what is the total asset turnover ratio?
38.
DuPont Analysis Last year Café Creations, Inc. had an ROA of 25 percent, a profit margin
of 12 percent, and sales of $4 million. What is Café Creations’ total assets?
39.
DuPont Analysis Last year Mocha Java, Inc. had an ROA of 10 percent, a profit margin of
5 percent, and sales of $25 million. What is Mocha Java’s total assets?
40.
Internal Growth Rate Last year Umbrellas Unlimited Corporation had an ROA of 10
percent and a dividend payout ratio of 50 percent. What is the internal growth rate?
41.
Internal Growth Rate Last year Rain Repel Corporation had an ROA of 5 percent and a
dividend payout ratio of 90 percent. What is the internal growth rate?
42.
Internal Growth Rate Last year Poncho Villa Corporation had an ROA of 16 percent and a
dividend payout ratio of 25 percent. What is the internal growth rate?
43.
Sustainable Growth Rate Last year Umbrellas Unlimited Corporation had an ROE of 16.5
percent and a dividend payout ratio of 40 percent. What is the sustainable growth rate?
44.
Sustainable Growth Rate Last year Rain Repel Corporation had an ROE of 10 percent and
a dividend payout ratio of 80 percent. What is the sustainable growth rate?
45.
Liquidity Ratios Burt’s TVs has current liabilities of $25 million. Cash makes up 40
percent of the current assets and accounts receivable makes up another 20 percent of
current assets. Burt’s current ratio = 0.85 times. What is the value of inventory listed on
the firm’s balance sheet?
46.
Liquidity Ratios Ernie’s Mufflers has current liabilities of $45 million. Cash makes up 5
percent of the current assets and accounts receivable makes up another 50 percent of
current assets. Ernie’s current ratio = 1.5 times. What is the value of inventory listed on
the firm’s balance sheet?
47.
Liquidity Ratios You have the following information on Marco’s Polo Shop: total liabilities
and equity = $205 million, current liabilities = $45 million, inventory = $60 million, and
quick ratio = 2.4 times. Using this information, what is the balance for fixed assets on
Marco Polo’s balance sheet?
48.
Liquidity Ratios You have the following information on Olivia’s Bridle Shop: total liabilities
and equity = $65 million, current liabilities = $10 million, inventory = $15 million, and
quick ratio = 3 times. Using this information, what is the balance for fixed assets on
Olivia’s balance sheet?
49.
Liquidity and Asset Management Ratios Oasis Products, Inc. has current liabilities = $10
million, current ratio = 1.5 times, inventory turnover ratio = 12 times, average collection
period = 20 days, and sales = $100 million. What is the value of their cash and marketable
securities?
50.
Liquidity and Asset Management Ratios Green Products, Inc. has current liabilities =
$40 million, current ratio = 2.4 times, inventory turnover ratio = 8 times, average collection
period = 40 days, and sales = $320 million. What is the value of their cash and marketable
securities?
51.
Asset Management and Profitability Ratios You have the following information on
Universe It Ts, Inc.: sales to working capital = 10 times, profit margin = 25 percent, net
income available to common stockholders = $3 million, and current liabilities = $1 million.
What is the firm’s balance of current assets?
52.
Asset Management and Profitability Ratios You have the following information on Zip’s
Diner, Inc.: sales to working capital = 8 times, profit margin = 5 percent, net income
available to common stockholders = $20 million, and current liabilities = $4 million. What
is the firm’s balance of current assets?
53.
Asset Management and Debt Management Ratios Use the following information to
calculate current assets: sales = $12 million, capital intensity ratio = 4 times, debt ratio =
45 percent, and fixed asset turnover ratio = 2.5 times.
54.
Asset Management and Debt Management Ratios Use the following information to
calculate current assets: sales = $100 million, capital intensity ratio = 0.5 times, debt ratio
= 30 percent, and fixed asset turnover ratio = 5 times.