Week 4 #5. if jares, inc., has an equity multiplier of 1.57, total

week 4

#5.

If Jares, Inc., has an equity multiplier of 1.57, total asset turnover of 1.70, and a profit margin of 6.7 percent, what is its ROE? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

#6

The Le Bleu Company has a ratio of long-term debt to long-term debt plus equity of .31 and a current ratio of 1.70. Current liabilities are $870, sales are $6,290, profit margin is 8.7 percent, and ROE is 19.2 percent. What is the amount of the firm’s net fixed assets? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

#7

Solve for the unknown number of years in each of the following (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)):

  

 

Present Value

Years

Interest Rate

Future Value

 

$

590

 

[removed]

9

%

 

$

1,502

 

 

 

840

 

[removed]

10

 

 

 

1,943

 

 

 

18,700

 

[removed]

17

 

 

 

308,639

 

 

 

21,800

 

[removed]

15

 

 

 

454,942

 

 

#8

Imprudential, Inc., has an unfunded pension liability of $565 million that must be paid in 15 years. To assess the value of the firm’s stock, financial analysts want to discount this liability back to the present.

  

If the relevant discount rate is 5.8 percent, what is the present value of this liability? (Enter your answer in dollars not in millions. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))