Black Stone Industries has a return on equity of 14.40 percent and a debt-equity ratio of...
Homework Answers
The answer is as follows:
Add Answer to:
Black Stone Industries has a return on equity of 14.40 percent and
a debt-equity ratio of...
Weston Industries has a debt-equity ratio of 1.6. Its WACC is 7.8 percent, and its cost...
Weston Industries has a debt-equity ratio of 1.6. Its WACC is 7.8 percent, and its cost of debt is 5.5 percent. The corporate tax rate is 21 percent. a. What is the company’s cost of equity capital? b. What is the company’s unlevered cost of equity capital? c-1. What would the cost of equity be if the debt-equity ratio were 2? c-2. What would the cost of equity be if the debt-equity ratio were 1.0? c-3. What would the...
Gates Appliances has a return-on-assets (investment) ratio of 18 percent. a. If the debt-to-total-assets ratio...
Gates Appliances has a return-on-assets (investment) ratio of 18 percent. a. If the debt-to-total-assets ratio is 25 percent, what is the return on equity? (Input your answer as a percent rounded to 2 decimal places.) b. If the firm had no debt, what would the return-on-equity ratio be? (Input your answer as a percent rounded to 2 decimal places.)
Gates Appliances has a return-on-assets (investment) ratio of 17 percent. a. If the debt-to-total-assets ratio...
Gates Appliances has a return-on-assets (investment) ratio of 17 percent. a. If the debt-to-total-assets ratio is 60 percent, what is the return on equity? (Input your answer as a percent rounded to 2 decimal places.) b. If the firm had no debt, what would the return-on-equity ratio be? (Input your answer as a percent rounded to 2 decimal places.)
Garwryk, Inc., which is financed with debt and equity, presently has a debt ratio of 79...
Garwryk, Inc., which is financed with debt and equity, presently has a debt ratio of 79 percent. What is the firm's equity multiplier? How is the equity multiplier related to the firm's use of debt financing (i.e., if the firm increased its use of debt financing would this increase or decrease its equity multiplier)? Explain. What is the firm's equity multiplier? The equity multiplier is given by: Equity Multiplier equals StartFraction 1 Over 1 minus Debt Ratio EndFraction The equity...
Blitz Industries has a debt-equity ratio of 1.6. Its WACC is 7.8 percent, and its cost...
Blitz Industries has a debt-equity ratio of 1.6. Its WACC is 7.8 percent, and its cost of debt is 5.5 percent. The corporate tax rate is 21 percent. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. What is the company’s cost of equity capital? b. What is the company’s unlevered cost of equity capital? c-1. What would the cost of equity be if the debt-equity ratio were 2?...
Weston Industries has a debt-equity ratio of 1.6. Its WACC is 12 percent, and its cost...
Weston Industries has a debt-equity ratio of 1.6. Its WACC is 12 percent, and its cost of debt is 10 percent. The corporate tax rate is 35 percent. (Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g., 32.16)) Required: a. Weston’s cost of equity capital is percent. b. Weston’s unlevered cost of equity capital is percent. c. The cost of equity would be percent if the debt-equity ratio were 2, percent if the debt-equity ratio were 1, and percent...
Bigelow has a levered cost of equity of 14.29 percent and a pretax cost of debt...
Bigelow has a levered cost of equity of 14.29 percent and a pretax cost of debt of 7.23 percent. The required return on the assets is 11 percent. What is the firm's debt-equity ratio based on MM Proposition II with no taxes?
Isolation Company has a debt-equity ratio of .80. Return on assets is 7.9 percent, and total...
Isolation Company has a debt-equity ratio of .80. Return on assets is 7.9 percent, and total equity is $480,000. What is the equity multiplier? (Round your answer to 2 decimal places. (e.g., 32.16)) Equity multiplier 1.80 What is the return on equity? (Round your answer to 2 decimal places. (e.g., 32.16)) Return on equity % What is the net income? Net income $
Synovec Company has a debt–equity ratio of .85. Return on assets is 9.6 percent, and total...
Synovec Company has a debt–equity ratio of .85. Return on assets is 9.6 percent, and total equity is $805,000. What is the company's equity multiplier? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Equity multiplier What is the company's return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Return on equity % What is the company's net income? (Do not...
Synovec Company has a debt-equity ratio of 75. Return on assets is 8.4 percent, and total...
Synovec Company has a debt-equity ratio of 75. Return on assets is 8.4 percent, and total equity is $855,000. a. What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the net income? (Do not round intermediate calculations.) a. Equity multiplier...
Isolation Company has a debt-equity ratio of .80. Return on assets is 7.9 percent, and total equity is $480,000. What is the equity multiplier? (Round your answer to 2 decimal places. (e.g., 32.16)) Equity multiplier 1.80 What is the return on equity? (Round your answer to 2 decimal places. (e.g., 32.16)) Return on equity % What is the net income? Net income $
Synovec Company has a debt-equity ratio of 75. Return on assets is 8.4 percent, and total equity is $855,000. a. What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the net income? (Do not round intermediate calculations.) a. Equity multiplier...
Most questions answered within 3 hours.
-
Developmental biology
A mouse contains a mutation that results in a failure of their
long
bones...
asked 34 seconds ago -
Alice has the RSA public key (n, e) = (11413, 251) and private
key d =...
asked 48 seconds ago -
QUESTION 5
A drug or medicine can reach the brain more effectively by
placing the drug...
asked 4 minutes ago -
Rammazzotti, Inc., is looking for feedback on company
performance. The company compares the budget for the...
asked 5 minutes ago -
A manufacturer of chocolate chips would like to know whether its
bag filling machine works correctly...
asked 14 minutes ago -
Consider the student registration business process at
your college:
1.)Describe the steps necessary for you to...
asked 21 minutes ago -
when released from rest at point A, an unknown ion moves to
point B. At point...
asked 13 minutes ago -
A stock is expected to pay the following dividends: $1.1
four years from now, $1.4 five...
asked 18 minutes ago -
G=yellow and g=green pea seeds. You cross a heterozygous
yellow-seeded plant with a green-seeded plant to...
asked 21 minutes ago -
Current Balance Experiment
a) When there is no current flowing through the electromagnet
coil, is there...
asked 19 minutes ago -
In Visual Basic 2017, Write a complete Main method that prints
Hello, world to the screen....
asked 36 minutes ago -
a) Find the pressure difference on an airplane wing if air flows
over the upper surface...
asked 42 minutes ago