A company has $200 billion of sales and $10 billion of net income.Its total assets are $100 billion, financed half by debt and half bycommon equity. What is its profit margin? (5%) What is its ROA?(10%) What is its ROE? (20%) Would ROA increase if the firm usedless leverage? (Yes) Would ROE increase? (No)

Q: Milton Industries expects free cash flows of $19 million each year. Milton's corporate tax rate is…

A: Given:ParticularsAmountFree cash flows$19MillionTax rate22%Unlevered cost of capital…

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A: Return on common equity (ROCE)= 25% Net borrowing cost (NBC)= 5% Financial leverage (FLEV)= 35%

Q: need help

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Q: what will be the new net income?

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A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

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Q: a) In each of the theories of capital structure the cost of equity rises as the amount of debt…

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Q: Suppose Alcatel-Lucent has an equity cost of capital of 10.2%, market capitalization of $11.20…

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Q: If a firm has an EV of $820 million and EBITDA of $187 million, what is its EV ratio?

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Q: Solve this question please

A: Correct answer: Option B) -3.70%. Explanation:Step :Net income = EBIT * ( - Tax rate)Net income =…

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A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Suppose Goodyear Tire and Rubber Company has an equity cost of capital of 7.6%, a debt cost of…

A: The Weighted Average Cost of Capital (WACC), sometimes referred to as the Composite Cost of Capital…

Q: Now, take the same firm, but put it in an environment where there is a 28% tax rate. h. What is the…

A: Okay, let's divide the procedure into four paragraphs, shall we?Examination of an Unleveraged…

Q: 10 Norwell Inc. has equity with a market value of $900 million and a current debt to capital ratio…

A: