3. Company WACC is 20%. Debt interest rate is 4% and D/ E ratio is 1,6. What is the cost of equity? HOW YOU CALCULATE THIS WITH EXCEL AND USING EXCEL FORMULAS?

Q: Current Ratio. What effect would the following actions have on a firm's current ratio? Assume that…

A: The current ratio is a financial metric that measures a company's ability to cover its short-term…

Q: A company hired you as a consultant to help estimate its cost of capital. You have obtained the…

A: The cost of equity can be estimated with the help of dividend discount model

Q: Question: Lee Sun's has sales of $3,500, total assets of $3,200, and a profit margin of 5 percent.…

A: Step 1: Given, Lee Sun's has sales = $3,500 at a profit margin = 5%, Total Assets = $3,200,Total…

Q: 29 The Home Depot is the largest home improvement retailer in the United States. Home Depot…

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been…

A: The Capital Asset Pricing Model (CAPM) is a financial model used to determine the expected return on…

Q: A firm has sales of R23, total assets of R39 and total debt of R7. The net profit margin is 4%. What…

A: Return on equity; A measure of financial performance calculated by dividing net profit by…

Q: Please correct answer and don't use hend raiting

A: Step 1: Step 2: Step 3: Step 4:

Q: Please if you can help with these 2, better skip pls  Assume the following relationships for the…

A: Sales to total assets = 1.5x (Total asset turnover)Return on assets = 8%Return on equity = 15%

Q: Gates Appliances has a return-on-assets (investment) ratio of 20 percent. a. If the…

A: Return on equity(or ROE) = Return on assets×Equity multiplier Equity multiplier is calculated as…

Q: 3. ABC Corp.’s equity multiplier is 1.25. What is its debt ratio?     4.Easy Corp.’s return on…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: If I remember correctly, the DuPont equation breaks down our ROE into three component ratios: the…

A: Dupont Equation: Return on equity = Net profit margin * Total asset turnover ratio * Equity…

Q: Bank ABC has a Return on Equity (ROE) equal to 22%, a total debt ratio (debt/total assets) equal to…

A: Here,Return on Equity (ROE) is 22%Total Debt Ratio is 0.9Asset Utilisation Ratio is 0.05

Q: Assume that you are a consultant to a company, and you have been provided with the following data:…

A: The cost of equity can be calculated with the help of dividend discount model

Q: The company’s ratios are: Current ratio = 1.58% Quick ratio = 1.53% operating margin = 3.49%…

A: Bank loan is a type of debt that can be taken by the firm to raise additional capital. In other…

Q: What is the cost of equity (%)?  What is the post-tax cost of debt (%)? What is the WACC (%)?…

A: With cost of equity (re), post tax cost of debt (rd), debt (D) and equity (E), WACC is calculated as…

Q: Answer please

A: Now, calculate the Return on Equity (ROE): ROE=(Profit Margin)×(Total Asset Turnover)×(Equity…

Q: lira Golf, Inc., follow. MOLIRA GOLF, INc. is of December 31, 20 19 Llabi Current llabilitle 857…

A: Profit Margin = Net Income / Sales x 100. Net Income = $36065 Sales = $189170 Net Margin =…

Q: The bike so shoppe has total assets of $536,712 and an equity multiplier of 1.36.  what is the…

A: Equity multiplier is used during solvency ratio analysis. This represents how much loans are used to…

Q: s of financial ratios? Next t e:

A: Main type of Financial Ratio are (1) Liquidity Ratio (2) Solvency Ratio (3) Activity Ratio (4)…

Q: What is the firm’s equity multiplier? (Please show work and explain)

A: Information Provided: Return on assets = 0.20 Return on equity = 0.25

Q: If the D/E ratio of a firm is 1.4, what is the firm's weight on equity? Hint: the formula is on your…

A: Debt to Equity Ratio = de = 1.4

Q: A company hired you as a consultant to help estimate its cost of capital. You have obtained the…

A: The cost of equity can be calculated from the dividend discount model

Q: Following is the balance sheet of Rooney Company for Year 3: ROONEY COMPANY Balance sheet Assets $…

A: Ratio analyses are used to compare the data of two or more years. It helps for the decision-making…

Q: The Merriam Company has determined that its return on equity is 15 percent. Management is interested…

A: Profit margin is the ratio between net income and sales revenue. It is calculated by dividing net…

Q: What is the equations you use for the questions below to solve in excel?

A: The Gordon growth model: The Gordon Growth model recognizes that the dividends constitute income or…

Q: DuPont system of analysis Use the following financial information for AT&T and Verizon to conduct a…

A: Performance in terms of asset utilization, profit earning ability, equity returns, etc. of two or…

Q: ive typing answer with explanation and conclusion    Fama's Llamas has a weighted average cost of…

A: Weighted average cost of capital is total cost of financing the capital of the company. It includes…

Q: Assume that you are a consultant to Morton Inc., and you have been provided with the following data:…

A: Current Dividend (D0) = $1.4Current Price of Stock (P0) = $36Growth Rate (g) = 4.8% or 0.048Expected…

Q: 6. Calculate and explain the Weighted Average Cost of Capital (WACC) based on the details below. a.…

A: WACC (Weighted Average Cost of Capital) is a financial metric used to assess a company's cost of…

Q: answer the question, "What is Joe's Pool Room, Inc's. Debt to Ed is a level 3 question. Total Asset…

A: Here we are provided with 4 financial ratios and using them we have to find the debt to equity…

Q: Suppose TRF = 5%, M = 12%, and b;= 0.75, what is the cost of equity? 5.00% 10.25% 12.00% 6.00%

A: CAPM refers to the model that uses the risk factor and the returns prevalent in the market to…

Q: what is the debt to equity ratio if the WACC is0.083 the cost of debt is 0.055 and the cost of…

A: Weighted average cost of capital is a metric used to evaluate the average cost that the company…

Q: The Crane Products Co. currently has debt with a market value of $275 million outstanding. The debt…

A: 1) cost of debt Using financial calculator, N =15*2 =30 PMT = 1000*9%/2 =45 PV = -1418.61 FV = 1000…

Q: . Explain what is meant by: a. Cost of debt b. Cost of preferred stock C. Cost of equity

A: Cost of Debt: It refers to the effective rate of return paid by the company on its debt like bonds,…

Q: Get Answer

A: Given:Sales = $ 3500Total Assets = $ 3200Profit Margin = 5 %Total Debt Ratio = 41 % To solve for the…

Q: Need answer

A: Return on Equity (ROE) is a measure of a company's profitability that calculates how much profit is…

Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.