Question Details

Hoagland Corp's stock price at the end of last year  


1. Ajax Corp's sales last year were $435,000, its operating costs were $362,500, and its interest charges were $12,500.  What was the firm's times-interest-earned (TIE) ratio?

a.	4.72
b.	4.97
c.	5.51
d.	5.80  

2. Hoagland Corp's stock price at the end of last year was $33.50, and its book value per share was $25.00.  What was its market/book ratio?

a.	1.34  
b.	1.41
c.	1.48
d.	1.55


3. Precision Aviation had a profit margin of 6.25%, a total assets turnover of 1.5, and an equity multiplier of 1.8.  What was the firm's ROE?

a.	15.23%
b.	16.03%
c.	16.88%  
d.	17.72%


4. Helmuth Inc's latest net income was $1,250,000, and it had 225,000 shares outstanding.  The company wants to pay out 45% of its income.  What dividend per share should it declare?

a.	$2.14
b.	$2.26
c.	$2.38
d.	$2.50  

5. DuPont analysis 
Last year Rennie Industries had sales of $305,000, assets of $175,000, a profit margin of 5.3%, and an equity multiplier of 1.2.  The CFO believes that the company could reduce its assets by $51,000 without affecting either sales or costs.  Had it reduced its assets by this amount, and had the debt/assets ratio, sales, and costs remained constant, how much would the ROE have changed?

a.	4.10%
b.	4.56%  
c.	5.01%
d.	5.52%


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