### Free Educational Resources

• > BUSI 530 CONNECT PLUS CHAPTER 4 HOMEWORK
+

# BUSI 530 CONNECT PLUS CHAPTER 4 HOMEWORK

##### Rating:
(0)
Author: angela bedfrd
##### Description:

http://theperfecthomework.com/busi-530-connect-plus-chapter-4-homework/

Here is a simplified balance sheet for Caterpillar Tractor:
Home Depot’s common stock closed fiscal 2012 at a price of \$73.30 per share. There were 1,766 million shares outstanding, At the end of 2012, the book value of Home Depot’s equity was \$17,783 million. Suppose the broad stock market falls 20% in a year and Home Depot’s stock price falls by 10%
Here are simplified financial statements for Watervan Corporation:
At the end of 2011 Home Depot’s total capitalization amounted to \$29,031 million. In 2012 debt investors received interest income of \$648 million. Net income to shareholders was \$4,487 million. (Assume a tax rate of 35%.)
Here are simplified financial statements for Phone Corporation in a recent year:
Consider this simplified balance sheet for Geomorph Trading:
Lever Age pays a rate of interest of 10% on \$9.0 million of outstanding debt with face value \$9.0 million. The firm’s EBIT was \$3.0 million.
Use the above information from the tables to work out the following missing entries, and then calculate the company’s return on equity. Note: Turnover and the average collection period are calculated using start-ofyear, not average, values.
In 2014 Electric Autos had sales of \$120 million and assets at the start of the year of \$190 million. If its return on start-of-year assets was 10%, what was its operating profit margin?

(more)
##### Try a College Course Free

Sophia’s self-paced online courses are a great way to save time and money as you earn credits eligible for transfer to over 2,000 colleges and universities.*

No credit card required

26 Sophia partners guarantee credit transfer.

226 Institutions have accepted or given pre-approval for credit transfer.

* The American Council on Education's College Credit Recommendation Service (ACE Credit®) has evaluated and recommended college credit for 21 of Sophia’s online courses. More than 2,000 colleges and universities consider ACE CREDIT recommendations in determining the applicability to their course and degree programs.

Tutorial