Questions from Corporate Finance

Q: Rockwell Industries has a three-year bond outstanding that pays a

Rockwell Industries has a three-year bond outstanding that pays a 7.25 percent coupon and is currently priced at $913.88. What is the yield to maturity of this bond? Assume annual coupon payments?

Q: Nugent, Inc., has a gross profit margin of 31.

Nugent, Inc., has a gross profit margin of 31.7 percent on net sales of $9,865,214 and total assets of $7,125,852. The company has a current ratio of 2.7 times, accounts receivable of $1,715,363, cash...

Q: Recreational Supplies Co. has net sales of $11,655

Recreational Supplies Co. has net sales of $11,655,000, an ROE of 17.64 percent, and a total asset turnover of 2.89 times. If the firm has a debt-to-equity ratio of 1.43, what is the company’s net inc...

Q: Nutmeg Houseware, Inc., has an operating profit margin of 10

Nutmeg Houseware, Inc., has an operating profit margin of 10.3 percent on revenues of $24,547,125 and total assets of $8,652,352. a. Calculate the company’s total asset turnover ratio and its operati...

Q: Modern Appliances Corporation has reported its financial results for the year ended

Modern Appliances Corporation has reported its financial results for the year ended December 31, 2017? Modern Appliances Corporation Income Statement for the Fiscal Year Ended December 31, 2017 Net Sa...

Q: The TBI Company has a number of days of inventory of 50

The TBI Company has a number of days of inventory of 50. Therefore, the TBI Company’s inventory turnover is closest to: a. 4.8 times. b. 7.3 times. c. 8.4 times. d. 9.6 times.

Q: Bummel and Strand Corp. has a gross profit margin of 33

Bummel and Strand Corp. has a gross profit margin of 33.7 percent, sales of $47,112,365, and inventory of $14,595,435. What is its inventory turnover ratio?

Q: If a company’s net profit margin is –5 percent, its

If a company’s net profit margin is –5 percent, its total asset turnover is 1.5 times, and its equity multiplier is 1.2 times, its return on equity is closest to a. –9.0 percent. b. –7.5 percent. c. –...

Q: Sorenson Inc. has sales of $3,112,489

Sorenson Inc. has sales of $3,112,489, a gross profit margin of 23.1 percent, and inventory of $833,145. What are the company’s inventory turnover ratio and days’ sales in inventory?

Q: Breckenridge Ski Company has total assets of $422,235,

Breckenridge Ski Company has total assets of $422,235,811 and a debt ratio of 29.5 percent. Calculate the company’s debt-to-equity ratio and equity multiplier?