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Sara Togas sells all its output to Federal Stores. The following table shows selected financial data,...
Sara Togas sells all its output to Federal Stores. The following table shows selected financial data, in millions, for the two firms: Sales Interest Payment Net Income Assets at Start of Year Federal Stores $100 $4 $10 $50 Sara Togas 20 1 4 20 a. Calculate the sales-to-assets ratio, the operating profit margin, and the return on assets for the two firms. (Do not round intermediate calculations. Round the sales-to-assets ratio answers to 2 decimal places. Enter the operating profit margin and return on assets answers as a percent rounded to 2 decimal places.) Federal Stores Sara Togas Sales-to-assets ratio Operating profit margin % % Return on assets % % b. Now assume that the two companies merge. If Federal continues to sell goods worth $100 million, how will the three ratios change? (Do not round intermediate calculations. Round the sales-to-assets ratio answer to 2 decimal places. Enter the operating profit margin and return on assets answers as a percent rounded to 2 decimal places.) Merged Firm Sales-to-assets ratio Operating profit margin % Return on assets %
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jeff jeffy answered 2 years agoRelated Solutions
Ashley Stores, Inc., sells gift cards for use at its stores. The following data pertains to...
Ashley Stores, Inc., sells gift cards for use at its stores. The
following data pertains to 2019, 2020, and 2021, the company’s
first three years of operation: 2019 2020 2021 Gift card sales $
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will never be redeemed. As of December 31, 2020, Ashley has revised
its estimate, and now believes 1.5% of all gift cards,...
The following table shows the short-run cost data of a perfectly competitive firm. Assume that output...
The following table shows the short-run cost data of a perfectly
competitive firm. Assume that output can only be increased in
batches of 100 units.
Quantity
Total Cost
(dollars)
Variable Cost
(dollars)
0
$1000
$0
100
1360
360
200
1560
560
300
1960
960
400
2760
1760
500
4000
3000
600
5800
4800
a. Explain how a firm chooses quantity to maximise profit in a
competitive market.
b. What is the firm’s fixed cost? (1 mark)
c. Suppose...
You are given the following table of output pertaining to T-Shirt sales data from different stores...
You are given the following table of output pertaining to
T-Shirt sales data from different stores in Pennsylvania. The
variable shirts is the number of T-Shirts sold per month in 100s,
and price is the price in dollars of the T-shirt.
Table 1: OLS regression Price and T-Shirts sold
Dependent variable:
shirts
price -0.40∗∗∗
(0.10)
Constant 7.00∗∗∗
(0.06)
Observations 1120
R2 0.20
Adjusted R2 0.20
Residual Std. Error 7.26 (df = 998)
F Statistic 12.15∗∗∗ (df = 1; 998)
Note:...
The following table shows a part of the daily labor-output relationship for a firm. In this...
The following table shows a part of the daily labor-output
relationship for a firm. In this table q is the quantity of output
produced and L the amount of labor required to produce the
corresponding level of output. For example, to produce 2 units of
output per day we need a total of 50 units of labor and to produce
5 units per day we need a total of 120 units of labor. The wage
rate is $40 per day...
The following table shows a part of the daily labor-output relationship for a firm. In this...
The following table shows a part of the daily labor-output
relationship for a firm. In this table q is the quantity of output
produced and L the amount of labor required to produce the
corresponding level of output. For example, to produce 2 units of
output per day we need a total of 50 units of labor and to produce
5 units per day we need a total of 120 units of labor. The wage
rate is $40 per day...
The table below shows hypothetical data for the volume of gold and nickel output across several...
The table below shows hypothetical data for the volume of gold
and nickel output across several years.
Gold
(troy ounces) Index Nickel
(lbs) Index
Year 1 1 230 000 4500
Year 2 1 416 000 4551
Year 3 1 349 000 4623
Year 4 947 000 4791
Year 5 1 012 000 4802
Year 6 1 321 000 4867
Year 7 1 450 000 100 5002 100...
BWT, Inc. shows the following data in its financial statements at the end of the year....
BWT, Inc. shows the following data in its financial statements
at the end of the year. Assume all securities were outstanding for
the entire year. 6.125% convertible bonds, convertible into 33
shares of common stock. Issue price $1,000, 100 bonds outstanding.
6.25% convertible preferred stock, $100 par, 2,315 shares
outstanding. Convertible into 3.3 shares of common stock, Issue
price $100. 8% convertible preferred stock, $100 par, 2,572 shares
outstanding. Convertible into 5 common shares, Issue price $80.
9,986 warrants are...
Table 1 The following table shows output per hour produced by the different units of labor....
Table 1
The following table shows output per
hour produced by the different units of labor.
Table 1
Number of Workers
Output per Hour
Price of the Product
0
0
$3
1
7
$3
2
12
$3
3
15
$3
4
17
$3
5
18
$3
The marginal revenue product of a
resource is equal to the product of the marginal product of an
input and marginal revenue.
8. According to
Table 1, if the wage rate is $9 per hour,...
The following table shows the real output demanded and supplied at various price levels in a...
The following table shows the real output demanded and supplied
at various price levels in a hypothetical economy.
Real Output Demanded
Price Level
Real Output Supplied (Billions of dollars)
(Billions of dollars)
(Index number)
(Billions of dollars)
5
90
70
10
60
65
20
30
50
40
20
40
70
10
10
On the following graph, use the blue points (circle symbols) to
plot the aggregate demand (Initial AD) curve for the economy. Then
use the orange points (square symbols)...
The following table shows the daily relationship between the number of workers and output (Q) for...
The following table shows the daily relationship between the
number of workers and output (Q) for a small factory in the short
run, with capital held constant. Each worker costs $200 per day,
and the firm has fixed costs of $100 per day. Calculate total
cost (TC), marginal cost (MC), and average total cost
(ATC). (Round your answers to two decimal places.)
WORKERS Q TC MC ATC
1 20 ? ? ?
2 44 ? ? ?
3 70...
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