Questions from Corporate Finance

Q: Keller Cosmetics maintains an operating profit margin of 8% and a

Keller Cosmetics maintains an operating profit margin of 8% and a sales-to-assets ratio of 3. It has assets of $500,000 and equity of $300,000. Assume that interest payments are $30,000 and the tax ra...

Q: Table 28.8 gives abbreviated balance sheets and income statements for

Table 28.8 gives abbreviated balance sheets and income statements for Walmart. At the end of fiscal 2017, Walmart had 2,960 million shares outstanding with a share price of $106. The companyâ
...

Q: Look again at Table 28.8, which gives abbreviated balance

Look again at Table 28.8, which gives abbreviated balance sheets and income statements for Walmart. Assume Walmart had a 35% marginal corporate tax rate in 2017. Calculate the following using balance-...

Q: Sara Togas sells all its output to Federal Stores. The following

Sara Togas sells all its output to Federal Stores. The following table shows selected 2017 financial data, in millions, for the two firms: The company’s tax rate is 35%. Calculate th...

Q: a. If a firm’s assets of $10,000 represent

a. If a firm’s assets of $10,000 represent 200 days’ sales, what is its annual sales? b. What is its asset turnover ratio?

Q: Look up some firms that have been in trouble. Plot the

Look up some firms that have been in trouble. Plot the changes over the preceding years in the principal financial ratios. Are there any patterns?

Q: State whether each of the following events is a source or use

State whether each of the following events is a source or use of cash, or neither. a. An automobile manufacturer increases production in response to a forecasted increase in demand. Unfortunately, the...

Q: a. What is the internal growth rate of Eagle Sport (

a. What is the internal growth rate of Eagle Sport (see Problem 25) if the dividend payout ratio is fixed at 50% and the equity-to-asset ratio is fixed at two-thirds? b. What is the sustainable growth...

Q: Here are alphas and betas for Estée Lauder and Caterpillar Tractor for

Here are alphas and betas for Estée Lauder and Caterpillar Tractor for the 60 months ending June 2017. Alpha is expressed as a percent per month. Explain how these estimates would be used...

Q: Table 29.18 shows the 2019 financial statements for the Executive

Table 29.18 shows the 2019 financial statements for the Executive Cheese Company. Annual depreciation is 10% of fixed assets at the beginning of the year, plus 10% of new investments. The company plan...