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Riverhawk Sports has return on equity of 19 percent, profit margin of 12 percent, sales to assets ratio of 1.18. What is the company’s debt to equity ratio?

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  1. Use the following information for Head Rat, Inc. (HRI) to answer this and the following question.

  2. Sales $250,000
    Cost of Goods Sold $124,000
    Depreciation $16,000
    Long-Term Debt Paid $18,000
    Total Assets $85,000
    Selling, General and Administrative Expense $32,000
    Interest Expense $6,477
    New Equity Raised $5,000
    Tax Rate 35%
    Retention Ratio 0.5

  3. What was the cash flow to stockholders for HRI?

  6. a.

    $13,596
    b.

    $15,920
    c.

    $18,245
    d.

    $21,998
    e.

    $24,117
    f.

    $27,235
  9. 1 points

Question 2

  1. What was the cash flow from assets for HRI?

    a.

    $42,722
    b.

    $36,073
    c.

    $39,397
    d.

    $47,475
    e.

    $48,594
    f.

    $53,712

1 points

Question 3

  1. Riverhawk Sports has return on equity of 19 percent, profit margin of 12 percent, sales to assets ratio of 1.18. What is the company’s debt to equity ratio?

    a.

    46.8%
    b.

    40.4%
    c.

    34.6%
    d.

    29.2%
    e.

    24.2%
    f.

    19.6%
    g.

    15.4%
    h.

    11.4%

1 points

Question 4

  1. Leveraged Corporation has a total debt to assets ratio of 50 percent. Its net income last year was $20,000. If the total debt was $160,000, what was the return on equity?

    a.

    12.5%
    b.

    15.3%
    c.

    18.8%
    d.

    23.2%
    e.

    29.2%
    f.

    37.5%
    g.

    50.0%
    h.

    70.8%

1 points

Question 5

  1. American Siesta Inc. (ASI) bonds have a coupon rate of 10% and pay coupon annually. The bonds have 20 years remaining to maturity and are selling for $1044.06. What is the capital gain yield of the ASI bond? 

    a.

    -0.181%
    b.

    -0.078%
    c.

    0.036%
    d.

    0.108%
    e.

    -0.126%
    f.

    0.021%
    g.

    -0.20%
    h.

    0.23%