Problem 19-12
A firm has an ROE of 3%, a debt-to-equity ratio of 0.5, a tax rate of 35%, and pays an interest rate
of 6% on its debt. What is its operating ROA? (Do not round intermediate calculations. Round
your answer to 2 decimal places. Omit the “%” sign in your response.)
Problem 19-13
A firm has a tax burden ratio of 0.75, a leverage ratio of 1.25, an interest burden of 0.6, and a
return on sales of 10%. The firm generates $2.40 in sales per dollar of assets. What is the firm’s
Data thousands
Cash Div 80
bus 33
interest 25
sale equip 72
Problem19-14
The following is cash flow data for Rocket Transport:
Cash dividend$80,000 Purchase of bus$33,000 Interest paid on debt$25,000 Sales of old equipment$72,000 Repurchase
of stock$55,000 Cash payments to suppliers$95,000 Cash collections from customers$300,000
a.Find the net cash provided by or used in investing activities. (Input the amount as positive value. Omit the “$” sign in your
response.)
cash payments 95
cash collection 300
Equity($ mil)
Debt($ mil)
ROC (%) CoC(%) capital($ mil) EVA
Problem19-15
Here are data on two firms. EquityDebtROCCost of Capital ($ million)($
million)(%)(%) Acme 100 50 17% 9% Apex 450 150 15% 10% a-1.Calculate the economic value
added for Acme and Apex. (Enter your answers in millions not in whole dollars. Omit the “$” sign in your