B. Is a means of assessing the risk of a company's financing structure.
The debt-to-equity ratio determined by dividing long-term debt by common stockholder equity.
The debt-to-equity ratio: Multiple Choice Is calculated by dividing book value of secured liabilities by book...
The cash flow on total assets ratio is calculated by: Multiple Choice Dividing average total assets by cash flows from financing activities. Total cash flows divided by average total assets times 365. Dividing total cash flows by average total assets. Dividing average total assets by total cash flows. Dividing cash flows from operations by average total assets.
The debt ratio is calculated by dividing: A. total debt by total assets. B. total assets by long-term liabilities. C. long-term liabilities by total assets. D. total assets by total debt.
Which of the following statements is true of the debt to equity ratio? A. The higher the debt to equity ratio, the greater the company's financial risk. B. If the debt to equity ratio is less than 1, the company is financing more assets with debt than with equity. C. If the debt to equity ratio is greater than 1, the company is financing more assets with equity than with debt. D. The higher the debt to equity ratio, the...
The statement of cash flows reports: Multiple Choice Ο Assets, liabilities, and equity. Ο Revenues, gains, expenses, and losses. Ο Cash inflows and cash outflows for an accounting period. cash intows an Ο Equity, net income, and dividends. Ο Changes in equity.
A difference between debt financing and equity financing is that: Multiple Choice debt financing must be repaid, while repayment of equity financing is not required. equity financing must be repaid, while repayment of debt financing is not required. only debt financing can be used to purchase assets. only equity financing can be used to purchase assets.
Harrison, Inc., has the following book value balance sheet: Balance Sheet Assets Liabilities and equity Current assets $ 140,000,000 Total debt $ 250,000,000 Equity Common stock 30,000,000 Capital surplus 77,000,000 Net fixed assets 415,000,000 Accumulated retained earnings 198,000,000 Total shareholders' equity $ 305,000,000 Total assets $ 555,000,000 Total debt and shareholders' equity $ 555,000,000 a. What is the debt–equity ratio based on book values? b. Suppose the market value of the company's debt is...
How is depreciation expense reported in the financial statements? Multiple Choice Ο Long term liabilities section of the statement of stockholder's equity Ο ) Financing activities section of the statement of cash flows Ο Current assots section of the balance shoot Ο C Operating expenses section of the income statement
Double-Major Co. has a cost of equity of 11.7 percent and an aftertax cost of debt of 4.47 percent. The company's balance sheet lists long- term debt of $345,000 and equity of $605,000. The company's bonds sell for 104.3 percent of par and market-to-book ratio is 2.83 times. If the company's tax rate is 40 percent, what is the WACC? Multiple Choice Ο 10.13% Ο 9.07% Ο 10.44% Ο 11.10% Ο 9.60%
Multiple Choice There is no condition known to date whereby a corporation can increase firm value through the use of leverage. o Corporations generally pay a lower cost on debt than do individuals due to their vast pool of liquid assets. o O If individual's pay a higher cost to borrow than corporations do, then corporations can increase firm value by borrowing. o Margin accounts tend to be high interest rate sources of funds for individuals. o o Corporations can...
12. a. What change in the book value of the company's equity took place at the end of 2015? . b. Is the company's market-to-book ratio meaningful? Is its book debt-equity ratio meaningful? Explain. c. Find the company's other financial statements from that time online. What was the cause of the change to its book value of equity at the end of 2015? . d. Does the company's book value of equity in 2016 imply that it is unprofitable? Explain....