Income Statements
2020 2019
Sales $2,000 $1,500
Operating costs excluding depreciation and amortization 1,250 1,000
EBITDA $750 $500
Depreciation and amortization 100 75
EBIT $650 $425
Interest 62 45
EBT $588 $380
Taxes (40%) 235 152
Net income $353 $228
Dividends paid $53 $48
Addition to retained earnings $300 $180
Shares outstanding 100 100
Price $25.00 $22.50
WACC 10.00%
What is the firm's 2020 current ratio? Do not round intermediate calculations. Round your answer to two decimal places.
2.03
If the industry average debt-to-assets ratio is 30%, then Rosnan's creditors have a smaller cushion than indicated by the industry average.
What is the firm's 2020 net profit margin? Do not round intermediate calculations. Round your answer to two decimal places.
18 %
If the industry average profit margin is 12%, then Rosnan's lower than average debt-to-assets ratio might be one reason for its high profit margin.
True
What is the firm's 2020 price/earnings ratio? Do not round intermediate calculations. Round your answer to two decimal places.
Using the DuPont equation, what is the firm's 2020 ROE? Do not round intermediate calculations. Round your answer to two decimal places.
18 %