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In 2012, Bidwell Shuttle Service had operating income of $150,000. their total a

ID: 2647922 • Letter: I

Question

In 2012, Bidwell Shuttle Service had operating income of $150,000. their total assets are $2,000,000. What was the ROA for 2012? (ROA = after-tax operating income/ total assets) $500,000 $1,500,000 $660,000 $340,000 $2,040,000 Calculate the EBIT for a firm with $6 million total revenues. $4 5 million cost of goods sold. $500,000 depreciation expense, and $120,000 interest expense.$1,500,000 $880,000 $1,000,000 ($120,000) If you increase accounts payable by $50,000 and decrease account receivable $50,000, how is net working capital changed? Unchanged Decreases Increases The current ratio is a measure of liquidity. True false A reduction m accounts payable uses cash, reducing the firm's net cash balance. True False FORD trades at $15 per share and has a beta of 0.85, T bills earn 1% and market risk is 9%. What would you expect the return for the stock to be? trades at $54 per share and has a beta of 2.5, T bills earn 2% and market risk is 11%. At the end of a year earnings per share are $6.97. If the stock then trades at $62, what is the payout ratio (hint find DIV1)? If the PV of a loan is $275,000, the interest rate is 4.875% per year and the term is 360 months, what is the monthly payment?

Explanation / Answer

30) ROA = After tax net operating income/total Asset

ROA = 150000/2000000

ROA = 7.5%

31) EBIT = Total Revenue - Cost of Good Sold - Depreciation Expenses

EBIT = 6000000 - 4500000 - 500000

EBIT = 1000000

C) 1000000

32) b) Decreases by $ 100000

33) a) True

34) a) True

35) As per CAPM

Return on Stock = 1 + 9*0.85

Return on Stock = 8.65%

C) 8.6%

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