We at Accounting Assignments Help provide Managerial Finance Homework Help with step by step calculation and explanation 24*7 from our finance experts.
Problem-1
Molteni Motors Inc. recently reported $2.25 million of net income. Its EBIT was $5 million, and its tax rate was 40%. What was its interest expense? (Hint:Write out the headings for an income statement and then fill in the known values. Then divide $2.25 million net income by 1 − T = 0.6 to find the pre-tax income. The difference between EBIT and taxable income must be the interest expense.)
Problem-2
Kendall Corners Inc. recently reported net income of $2.9 million and depreciation of $551,000. What was its net cash flow? Assume it had no amortization expense.
Problem-3
In its most recent financial statements, Del-Castillo Inc. reported $40 million of net income and $920 million of retained earnings. The previous retained earnings were $903 million. How much in dividends did the firm pay to shareholders during the year? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000.
Problem-4
Vigo Vacations has $199 million in total assets, $4.5 million in notes payable, and $22.5 million in long-term debt. What is the debt ratio?
Problem-5
Reno Revolvers has an EPS of $2.40, a cash flow per share of $3.55, and a price/cash flow ratio of 10.0. What is its P/E ratio?