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?