Question

Data for Barry Computer Co. and its industry averages follow. The firm's debt is priced at par, so the market value of its debt equals its book value. Since dollars are in thousands, number of shares are shown in thousands too.

Barry Computer Company

Balance Sheet as of Dec, 31, 2019 (In Thousands)

Cash	$82,460	Accounts Payable	141,360
Receivables	$353,400	Other Current Liabilities	106,020
Inventories	$270,940	Notes Payable to bank	117,800
Total Current Assets	$706,800	Total current liabilities	365,180
Net Fixed Assets	$471,200	Long term debt	270,940
Total Assets	$1,178,000	Common equity (54,188 shares)	541,880
		Total Liabilities & Equity	1,178,000

Barry Computer Company

Income Statement for Year eNDED December 31, 2019 (In Thousands)

Sales		$1,900,000
Cost of Goods Sold
Materials	$836,000
Labor	$456,000
Heat, Light and power	$114,000
Indirect labor	$190,000
Depreciation	$76,000	$1,672,000
Gross Profit		$228,000
Selling Expenses		$114,000
General and administrative expenses		$19,000
Earnings before interest and taxes (EBIT)		$95,000
Interest expense		$32,513
Earnings before taxes (EBT)		$62,487
Federal and state income taxes (25%)		$15,622
Net income		$46,865
Earnings per share		0.8649
Price per share on Dec, 31, 2019		$13

Calculate

1) ROIC

2) M/B

3) P/E

4) EV/EBITDA

Answer 1

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