Pfizer currently has a Net Profit Margin of 3%, their corporation tax rate is 40% and...

Pfizer currently has a Net Profit Margin of 3%, their corporation tax rate is 40% and their annual interest payments are $5 million. How much do Pfizer's sales need to be to produce a times interest earned of 8.0?

Expert Solution

jeff jeffy answered 2 years ago

Figure It Out Corporation has a net profit margin of 8%, a total asset turnover of...

Figure It Out Corporation has a net profit margin of 8%, a total asset turnover of 2 times, total assets of $1 billion, and total equity of $500 million. What were the company’s sales and net profit?

Massey-Moss Corporation has a perpetual EBIT of $3 million and a 40% tax rate. Let’s assume...

Massey-Moss Corporation has a perpetual EBIT of $3 million and a 40% tax rate. Let’s assume that depreciation expense is zero. It is able to borrow at an interest rate of 14%, whereas its required rate of return on equity in the absence of borrowing is 18%. a. In the absence of personal taxes, what is the value of the firm when it has no debt? When it has $4 million in debt? b. If the marginal personal tax rates...

Nerk pharm. net profit margin was 10% on sales of $2,000,000. Debt to assets was 40%...

Nerk pharm. net profit margin was 10% on sales of $2,000,000. Debt to assets was 40% with total liabilities of $500,000. How much was the Return on Assets?

Assume a firm has $45 million in operating profit. The firm’s tax rate is 40%. What...

Assume a firm has $45 million in operating profit. The firm’s tax rate is 40%. What is the tax shield of the firm’s $38 million in debt that charges a 10% interest rate? Which of the following is TRUE regarding Company ABC given the following information? Current Assets = $250 Fixed Assets =$70 Current Liabilities = $110 Long term Debt = $90 Sales = $330 Net Income = $60 Shareholders’ Equity = $320 Current Ratio = 1.30 Asset turnover= 2.75...

Vigor Corporation reports a net income before tax for 2020 of $512,800, has a tax rate...

Vigor Corporation reports a net income before tax for 2020 of $512,800, has a tax rate of 21% and provides the following selected information (covers the three tax difference items) from its ledger as at December 31, 2019 and 2020: 2019 2020 Equipment, at cost 900,000 DR 900,000 DR Accumulated depreciation, equipment 450,000 CR 525,000 CR Deferred Tax Asset 10,080 DR ? Warranty Liability 48,000 CR 56,000 CR Deferred Tax Liability 47,250 CR ...

Michaels Corp. expects pre-tax profit of $ 40,000. If the ordinary tax rate is 40%, calculate...

Michaels Corp. expects pre-tax profit of $ 40,000. If the ordinary tax rate is 40%, calculate the company's after-tax profit and the profit that can be distributed to ordinary shareholders under the following conditions. The company pays $ 10,000 in interest. The company pays $ 10,000 in dividends on preferred shares. He bought the property for $ 30,000 and sold it for $ 35,000. The company is in a tax-exempt zone of 40% of its assets. a. Find the gain...

A company has net income of $190,000, a profit margin of 9.20 percent, and an accounts...

A company has net income of $190,000, a profit margin of 9.20 percent, and an accounts receivable balance of $106,056. Assuming 66 percent of sales are on credit, what is the company's days' sales in receivables?

A firm has a net profit margin of 4.5%, a total asset turnover of 0.72, and...

A firm has a net profit margin of 4.5%, a total asset turnover of 0.72, and a financial leverage multiplier of 1.43. 1. Calculate the firm's ROA and ROE. 2. What is the advantage to using the DuPont system to calculate ROE over the direct calculation of earnings available for common stockholders divided by common stock equity?

"The FIN340 Company has a net profit margin of 8.75% on annual sales of $86,500,000 and...

"The FIN340 Company has a net profit margin of 8.75% on annual sales of $86,500,000 and the firm has 980,000 shares outstanding. If the firm's P/E ratio is 7.2, how much is the stock currently selling for?"

A company has net income of $188,000, a profit margin of 9.20 percent, and an accounts...

A company has net income of $188,000, a profit margin of 9.20 percent, and an accounts receivable balance of $106,149. Assuming 66 percent of sales are on credit, what is the company's days' sales in receivables?

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