Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) 91,140 1,960 $4,900 960 $3,940
Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) 91,140 1,960 $4,900 960 $3,940
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 87E: Cost of Debt Financing Stinson Corporations cost of debt financing is 6%. Its tax rate is 30%....
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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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![vas.msst
Net sales
Operating costs except depreciation
Depreciation
Earnings before interest and taxes (EBIT)
Less interest
Earnings before taxes (EBT)
Taxes
Net income
Other data:
Shares outstanding (millions)
Common dividends (millions of $)
Int rate on notes payable & L-T bonds
Federal plus state income tax rate
Year-end stock price
$98,000
91.140
1,960
$4,900
960
$3,940
1,576
$2,364
500.00
$827.40
6%
40%
$56.74
Refer to Exhibit 4.1. What is the firm's ROA? Do not round your intermediate calculations,](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F008f1f33-a5f8-4fde-a427-2a87feb365a3%2Fba5ef328-3433-4fea-85de-7138a76c5d2a%2F5hus6ib_processed.jpeg&w=3840&q=75)
Transcribed Image Text:vas.msst
Net sales
Operating costs except depreciation
Depreciation
Earnings before interest and taxes (EBIT)
Less interest
Earnings before taxes (EBT)
Taxes
Net income
Other data:
Shares outstanding (millions)
Common dividends (millions of $)
Int rate on notes payable & L-T bonds
Federal plus state income tax rate
Year-end stock price
$98,000
91.140
1,960
$4,900
960
$3,940
1,576
$2,364
500.00
$827.40
6%
40%
$56.74
Refer to Exhibit 4.1. What is the firm's ROA? Do not round your intermediate calculations,
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