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3 pts D Question 5 5) If a firm has a debt-equity ratio of 1.0, then...
Question 1(10 pts): D SS Stores has total debt of $4,910 and a debt-equity ratio of 0.52. What is the value of the total assets? a. $16,128.05 b. $7,253,40 c. $9,571.95 d. $11,034.00 e. $14,352.31 i. TJ's has annual sales of $813,200, total debt of $171,000, total equity of $396,000, and a profit margin of 5.78 percent. What is the return on assets? a. 8.29 percent b. 6.48 percent c. 9.94 percent d. 7.78 percent e. 8.02 percent ii) Bernice's...
Question 4 7.5 pts A firm has the same return on assets as its return on equity. Which of the following must be true? has no net working capital. has a debt-equity ratio of 1.0. has an equity multiplier of 1.0. may have short-term, but not long-term debt. is using its assets as efficiently as possible. < Previous Next →
4. A firm has Debt-Equity ratio of 1.2 and Total Assets of $2 million. What must be total debt? 5. A firm has sales of $355,000, net income of $28,000, and dividends of $12,500. Total debt is $73,000 and Total equity is $95,000. If the firm grows at the SGR, issues no new equity, and maintains its Debt-Equity ratio, how much must be borrowed?
4. A firm has Debt-Equity ratio of 1.2 and Total Assets of $2 million. What must be total debt? 5. A firm has sales of $355,000, net income of $28,000, and dividends of $12,500. Total debt is $73,000 and Total equity is $95,000. If the firm grows at the SGR, issues no new equity, and maintains its Debt-Equity ratio, how much must be borrowed?
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 sales of $500,000, a debt-to-equity ratio of one, and total assets of $1,000,000. If its profit margin is 5%, what is the firm’s return on equity? a) 3.3% b) 6.7 % c) 5.0 % d) 2.5 % e) Further information is needed,
2. A firm has a target debt-to-equity ratio of 3. Its cost of equity equals 12 percent, its cost of debt is 9 percent, and the tax rate is 34 percent. What is the WACC? a) 7.46 percent. b) 8.97 percent d) 10.00 percent. d) 10.49 percent.
A firm currently has a debt-equity ratio of 0.9. The debt, which is virtually riskless, pays an interest rate of 3 %. The expected rate of return on the equity is 12 %. What is the Weighted-Average Cost of Capital if the firm pays no taxes? wacc = 7.74 What would happen to the expected rate of return on equity if the firm changed its debt-equity ratio to 0.1? Assume the firm pays no taxes, the cost of debt does...
D Question 54 1 pts Beranek Corp has $695,000 of assets (which equal total invested capital), and it uses no debt- it is financed only with common equity. The nevw CFO wants to employ enough debt to raise the total debt to total capital ratio to 40%, using the proceeds from borrowing to buy back common stock at its book value. How much must the firm borrow to achieve the target debt ratio? $219.620 $278,000 o $344,720 $294,680 $247,420 Previous...
answer second part of question below A firm currently has a debt-equity ratio of 0.4. The debt, which is virtually riskless, pays an interest rate of 5%. The expected rate of return on the equity is 10 %. What is the Weighted Average Cost of Capital if the firm pays no taxes? Enter your answer as a percentage rounded to two decimal places. Do not include the percentage sign in your answer. WACC = 8.57 Correct response: 8.57+0.02 What would...