1. Suppose that a firm’s Return on Equity (ROE) equals 12.9-percent, equity multiplier equals two, and asset turnover equals 3.8. Calculate the firm’s net profit margin in percent.
2. Suppose that a firm’s Return on Equity (ROE) is 12.1-percent, net profit margin is 2.0-percent, and asset turnover is 3.6. Calculate the firm’s equity multiplier.
3. Last year a firm's return on equity (ROE) was 13.9-percent and sales revenue was $6.8 billion. If balance sheet equity was $2.1 billion at the end of last year, what was the firm's net profit margin last year (in decimal; not percent)?
4. At the end of last year, a firm had 395 million common shares outstanding and $1.6 billion of balance sheet equity. If the firm's return on equity (ROE) was 14.4-percent last year, what was the firm's earnings per share (EPS) last year?
5. At the end of last year, a firm had $3.2 million in balance sheet equity, 4.5 million common shares outstanding, and the price per share of common stock was $37.0. What was the firm's market value to book value ratio (also called price to book ratio)?
6. Last year a firm's net income after tax was $2.7 million and at the end of last year the firm's common stock price per share was $21.3 and number of common shares outstanding was 6.4 million. What was the firm's price to earnings (PE) ratio last year?
7. Next period a firm's variable cost per unit is $14.0, total fixed costs are $12328.6, and sales price per unit is $34.94. If 1475 units are produced and sold next period, what is the firm's operating profit on those sales?
8. Next period a firm's variable cost per unit is $11.3, total fixed costs are $11641.4, and sales price per unit is $26.82. What is the firm's operating break-even?
9. Next period a firm's variable cost per unit is $12.5, total fixed costs are $11817.3, and sales price per unit is $34.49. If 441 units are produced and sold next period, what is the firm's operating profit on those sales?
10. Next period a firm's variable cost per unit is $11.7, total fixed costs are $11680.3, and sales price per unit is $28.55. What is the firm's operating break-even?