Total debt ratio =(1.4-1)/1.4 =0.28
The correct answer is :-
B. total debt ratio(D/A) of 0.28
Collapse QUESTION 14 A firm has an equity multiplier of 1.4. This means that the firm...
QUESTION 14 A firm has an equity multiplier of 1.4. This means that the firm has a: A total debt ratio (D/A) of 0.33. B total debt ratio (D/A) of 0.28. debtequity (D/E) ratio of 0.33 Dtotal debt ratio (D/A) of 0.67. E debt/equity (D/E) ratio of 0.67
QUESTION 8 A firm has an equity multiplier of 1.4. This means that the firm has a: A. total debt ratio (D/A) of 0.28. B.total debt ratio (D/A) of 0.33. OC. debt/equity (D/E) ratio of 0.67. D. total debt ratio (D/A) of 0.67. O E. debt/equity (D/E) ratio of 0.33. QUESTION 9
A firm has an equity multiplier of 1.3. This means that the firm has a: A total debt ratio (D/A) of 0.33. O B. debt/equity (D/E) ratio of 0.67. OC. debt/equity (D/E) ratio of 0.33. D. total debt ratio (D/A) of 0.28. E. total debt ratio (DA) of 0.23.
Collapse QUESTION 3 Underwood Homes Sales has total assets of $589,900 and total debt of $218,000. What is the equity multiplier? A 0.59 B. 2.17 C. 1.59 D.0.46 E. 1.85
5. A firm with an equity multiplier of 4.0, will have a debt ratio of a. 0.25 b. 1.00 c. 0.75 d. 4.00
A firm has a debt-to-equity ratio of 1.4, a profit margin of 15%, $600,000 in debt with an interest rate of 10%, EBIT of $220,000, and a tax rate of 30%. a. What is the firm’s total asset turnover? b. What is the firm’s times interest earned? c. What is the firm’s return on equity?
A firm has a debt-equity ratio of .39. For every $1 in assets, how much money did the firm borrow (that is, how much of that $1 is financed with debt)? A. 0.36 B. 0.28 C. 1.39 D. 1.56 E. .64
1. A firm has a profit margin of 3% and an equity multiplier of 2.0. Its sales are $500 million, and it has total assets of $150 million. What is its ROE? Do not round intermediate calculations. Round your answer to two decimal places. % 2. Baker Industries’ net income is $26,000, its interest expense is $5,000, and its tax rate is 45%. Its notes payable equals $23,000, long-term debt equals $80,000, and common equity equals $250,000. The firm finances...
KIMP Hotel has an expected return on equity of 15% and an after-tax cost of debt of 6%. What debt-equity ratio (i.e., D/E) can produce a WACC of 12%? 0.50 0.67 0.75 0.33
13 ) sara co has equity multiplier of 3, what is its debt ratio ( assumme the firm operations are financed by both dept ant equity)