Question: First-Level Analysis of Financial Statemen1:s (Easy) A finn whose shares traded at three times their book value on December 31 , 2012, had the accompanying financial statements. Amounts are in millions of dollars. The firm's marginal tax rate is 33 percent. There are no dirty-surplus income items in the equity statement.
a. The firm paid no dividends and issued no shares during 2012, but it repurchased some stock. Calculate the amount of stock repurchased.
b. Calculate the following measures: Return on common equity (ROCE) Return on net operating assets (RNOA) Financial leverage (FLEV) The operating spread (SPREAD) Free cash flow
c. Does it make sense that this firm's shares should trade at three times book value?