rent annual cash dividend divided by the current market price per share Collapse QUESTION 22 Taylor,...

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Question

Answer 1

Answer #1

Answer:

Total Assets = $8,999
Let Total Debt be “$x”
Total Assets = Total Debt + Total Equity
Then, Total Equity will be $8,999 - $x

Debt / Equity ratio = Total Debt / Total Equity
0.55 = $x / ($8,999 - $x)
$4,949.45 - $0.55x = $x
$4,949.45 = $1.55x
x = $3,193.19

Total Debt = $3,193.19
Total Equity = $8,999 - $3,193.19
Total Equity = $5,805.81

Return on Equity = Net Income / Total Equity
0.17 = Net Income / $5,805.81
Net Income = $986.99

Answer 2

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