For the Week for this week Assignment, you will submit answers to the following questions in your textbook:
· Question 3-2
· Question 3-7
· Question 3-10
· Question 4-6
· Question 4-8
QUESTION FOR CHAPTERS 3
3-2 Who are some of the basic users of financial statements, and how do they use them?
3-7 What is free cash flow? If you were an investor, why might you be more interested in free cash flow than net income?
3-10 Explain the following statement: Our tax rates are progressive.
Question for chapters 4
4-6 DuPONT AND ROE A firm has a profit margin of 3% and an equity multiplier of 1.9. Its sales are $150 million, and it has total assets of $60 million. What is its ROE?
4-8 DuPONT AND NET INCOME Precious Metal Mining has $17 million in sales, its ROE is 17%, and its total assets turnover is 3.2 . Common equity on the firm’s balance sheet is 50% of its total assets. What is its net income?