The DuPont identity can be used to help managers answer which of the following questions related to a company’s operations? I. How many sales dollars are being generated per each dollar of assets? II. How many dollars of assets have been acquired per each dollar in shareholders’ equity? III. How much net profit is being generated per dollar of sales? IV. Does the company have the ability to meet its debt obligations in a timely manner?
Assume you intend to retire 47 years from today. Your curren…
Assume you intend to retire 47 years from today. Your current salary is $80,000 per year, and you expect to earn salary increases of 3.25 percent each year. What annual salary do you expect to earn 47 years from today?
Kasturi Safe & Lock generated net income of $911, depreciati…
Kasturi Safe & Lock generated net income of $911, depreciation expense was $47, and dividends paid were $25. Accounts payables increased by $15, accounts receivables increased by $28, inventory decreased by $14, and net fixed assets decreased by $8. There was no interest expense. What was the net cash flow from operating activity?
You want to retire exactly 30 years from today with $1,920,0…
You want to retire exactly 30 years from today with $1,920,000 in your retirement account. If you think you can earn an interest rate of 9.95 percent compounded monthly, how much must you deposit each month to fund your retirement?
Moody Properties is going to reduce its annual dividend by 1…
Moody Properties is going to reduce its annual dividend by 10 percent a year for the next two years. After that, it will maintain a constant dividend of $2 per share. Last year, the company paid an annual dividend of $3 per share. What is the market value of this stock if the required return is 13.7 percent?
A firm’s external financing need is met by:
A firm’s external financing need is met by:
Barker Fabricating is operating at 79 percent capacity and e…
Barker Fabricating is operating at 79 percent capacity and earning a substantial profit. An increase in sales is least likely to increase the firm’s:
Arcs and Triangles paid an annual dividend of $1.47 per shar…
Arcs and Triangles paid an annual dividend of $1.47 per share last month. The company is planning on paying $1.52, $1.58, and $1.60 per share over the next three years, respectively. After that, the dividend will be constant at $1.65 per share per year. What is the market price of this stock if the market rate of return is 12 percent?
Williams & Gillespie has net fixed assets of $36,200, total…
Williams & Gillespie has net fixed assets of $36,200, total assets of $51,300, long-term debt of $22,000, and total debt of $29,700. What is the net working capital to total assets ratio?
You hope to buy your dream car five years from now. Today, t…
You hope to buy your dream car five years from now. Today, that car costs $62,500. You expect the price to increase by an average of 2.9 percent per year. How much will your dream car cost by the time you are ready to buy it?