1. What factors are responsible for the recent surge in international portfolio investment?
2. Zombie Corp. has a profit margin of 5.6 percent, total asset turnover of 1.8, and ROE of 20.14 percent. What is this firm’s debt-equity ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)
3. Rainer Inc. has fixed costs of $2,000,000, including depreciation of $300,000. The EBITDA is $1,250,000. Calculate the cash flow operating leverage. What does this mean?
4. Roadrunner Trucking earns $4.50 per mile. Variable cost per mile is $2.50. Fixed costs are $1,000,000 including depreciation of $350,000. Compute the cash breakeven in yards.