A company
Q: . If the tax rate is 25 percent, what is the value of the firm? (Do not round intermediate…
A: Firm Value: It represents the sum of all the creditor's claims & shareholders. It can be…
Q: need help
A: Step 1: Understand the formula for the given ratios: Return on Equity = Net Income/ Total EquityDebt…
Q: A firm has a tax burden ratio of 0.85, a leverage ratio of 1.25, an interest burden of 0.7, and a…
A: The conceptual formula is represented mathematically:
Q: Tech Star Ltd is evaluating its CEO's performance last year.The net income earned is 1.2 million.The…
A: Economic value added(EVA) is a measures of economic profit, it calculated by deducting net operating…
Q: Key Lime Pie Co. expects EBIT of $100,000 every year forever. Key Lime Pie Co. currently has no debt…
A: A levered firm refers to a company that has debt in its capital structure. Levered firms often use…
Q: The Blazer Company's EPS last year, EPSo, was $1.50. Blazer expects sales to increase by 15% during…
A: Degree of Total leverage (DTL)= DOL x DFLWhereDOL = Degree of operating leverage = 1.25DFL = Degree…
Q: A company has a profit margin of 25%, an asset turnover ratio of 1.5, and an equity multiplier ratio…
A: Return on equity is a ratio which measures the return to company in terms of equity. It indicates…
Q: A company can choose one of two investment plans, A and B. Under plan A, it can invest $ 6800 at…
A: Here,Plan A:Investment is $6,800Interest Rate is 7.5%Time Period is 5 yearsCompounding Period is…
Q: Calvert Corporation expects an EBIT of $25,500 every year forever. The company currently has no…
A: Given information, EBIT = $25,500 Cost of Equity = 15.4% Borrow rate = 10.2% Tax rate =21%
Q: A new supplier has offered your firm the credit terms 2/10, Net 30 on a $1,000,000 order. Late…
A: Suppliers usually offer credit terms to the buyers which aim to incentivize the buyer for making…
Q: The value of HILEV firm at the end of one year can be $50 m or $100 m with equal probability of 0.5.…
A: Here,Value of Firm at the end of year 1 is either $50 million or $100 million with equal…
Q: A firm has a tax burden ratio of 0.85, a leverage ratio of 1.5, an interest burden of 0.9, and a…
A: The conceptual formula is represented mathematically:
Q: Want answer
A: Step 1: GivenDept ratio = 15 % = 0.15ROE = 13 % = 0.13ROA = ? Step 2: Formula usedDebt ratio = Total…
Q: EBIT is $3.25 million, and the interest expense is $1.05 million. How many times over can the firm…
A: The net operating profits after taxes (NOPAT) is the operating profits after taxes. It includes all…
Q: 1.If your sales is 250,000, How much will be your total earnings if you received a fixed salary of…
A: Sales commission is an additional earning over the fixed salary for the employee which he receives…
Q: The Cornelius Company has an ROE of 14.8 percent and a payout ratio of 40 percent. What is the…
A: A maximum growth rate that a company expects to sustain in the long run is term as the sustainable…
Q: Your company is expected to earn (as a cash flow) $3 million next year, $3.06 million the following…
A: The value of the company is calculated as the discounted value of cash flows.
Q: A firm that is currently unlevered has WACC = rS = 10%/year. This company plans to do a…
A: The objective of the question is to calculate the cost of equity (rS) after the firm's…
Q: Your company wants to buy a new piece of machinery for $2.3 million. You will pay for 15% of the…
A: Weighted Average Cost of Capital: When a firm's weighted average cost of capital (WACC) is…
Q: What is the sustainable growth rate?
A: Return on Equity = Net Income / Equity *100 Return on Equity = $4,256 / $21,560 *100 Return on…
Q: Suppose you have calculated the value of the risks for your insurance company. What is the required…
A: Required risk based capital is the required capital needed by the insurance company to cover the…
Q: 1. Price is ten times PGI, there are 10% vacancies, operating expenses are 40% of EGI. You are…
A: Equity dividend rate = (NOI - mortgage payments)/Equity proportion Cap rate = NOI/Price DSCR =…
Q: The manager of a firm at t=0 has to decide whether to liquidate or to continue. If he decides to…
A: Step 1:The image you sent is a decision-making problem about a firm facing financial difficulty. The…
Q: You've collected the following information about Molino, Inc.: $205,000 Sales $ 14,200 $ 9,100…
A: Step 1: Calculate the retention ratio (b) as follows: Step 2: Calculate the return on equity (ROE)…
Q: Suppose a firm’s monthly account analysis statement shows a service charge of $10,000 and an…
A: The net amount of cash in a checking account is calculated as an earnings allowance, and the credit…
Q: Question: Philips, Inc. has a debt ratio of 15% and ROE =13%. What is Phillips' ROA?
A: To find Philip's Return on Assets (ROA), we can use the relationship between Return on Equity (ROE),…
Q: How much money can a company spend now instead of spending $10,000 in year 3, $20,000 in year 4, and…
A: 3 year future value = $10,000 4 year future value = $20,000 5 year future value = $30,000 Interest…
Q: not use ai please
A: givenface value of bond (fv) = 1000coupon rate = 4%since the coupons are paid semi annually semi…
Q: Ice Cream Sandwich Co. expects EBIT of $100,000 every year forever. Ice Cream Sandwich Co. currently…
A: If the company uses zero debt then such a company will be referred to as an unlevered firm and the…
Q: Identify which principle of finance is shown in this example?
A: Finance is a subject that deals with the financial transactions of the company. Finance is based on…
Q: a. What is the current value of the company? (Do not round intermediate calculations and round…
A: Value of Firm: It is the value of creditors' and shareholders' claims altogether. NOTE: As per…
Q: What is your percentage rate of return if, in one year, IBM stock is selling for $36 per share?
A: The percentage rate of return (or simply "rate of return") is a financial measure used to evaluate…
Q: If EBITDA to sales ratio is 40%, sales are 100000 OMR, debt is 10000. The debt to EBITDA is equal…
A: SOLUTION- FORMULAS- 1- EBITDA TO SALES RATIO = EBITDA / SALES 2- DEBT TO EBITDA = DEBT / EBITDA
Q: FINA's business risk (Ru) is 9% in the industry. The debt-to-equity ratio is 0.4. The cost of debt…
A: MM Proposition II refers to the theory that the cost of equity is considered to be directly…
Q: The following data applies to a firm: Interest charges=P50,000.00; Sales = P300,000.00; Tax…
A: Here in this case we are required to calculate interest covered ratio. We first need to understand…
Q: need the answer with explanation
A:
Q: Comment on the liquidity of the two companies. Which company has more risk of not satisfying its…
A: Operating Cycle is summation of Inventory Period and Account Receivable Period. That is, the period…
Q: A company usually uses a discount factor of 11%. They are considering an investment which they think…
A: To determine the rate to use for the project, we need to calculate the weighted average cost of…
Q: Ace Industries has current assets equal to $9 million. The company's current ratio is 2.5, and its…
A: Current assets = $9,000,000 Current ratio = 2.5 Quick ratio = 2.1
Q: Upon further investigation, you have found that the amount of account payables for Companies A and X…
A: Ratio Analysis: Under Ratio analysis, various items of financial information in the financial…
Q: 1) A firm that is currently unlevered has WACC = rS = 10%/year. This company plans to do a…
A: The first part of the question is asking for the cost of equity (rS) after the firm has undergone…
Q: A commercial bill with a face value of $50 000 has a current price of $49,291. This bill is trading…
A: Maturity refers to a period at which the bills or bonds retire. This is the period to which the…
Q: Need answer
A: Reference:Tamplin, T. (2023i, November 28). Debt Ratio | Definition, Components, Formula, Types,…
Q: One business has a large amount of debt on which it pays an annual yield of 8%. A competitor has no…
A: Present value for company with large amount of debt = Future value / (1+r)^n Where, r = 8% n = 1…
Q: A company borrows 100,000$ and must repay it in a month. What is the effect of this borrowing on the…
A: Net working capital = Current Assets - Current Liabilities
Q: . A company manufacturing ca са
A: Variable prices and glued prices, in social science, ar the 2 main kinds of prices that a…
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- A company charges a customer $50 at the end of each month, and its cost per customer is $10 per month. The acquisition cost is $200. After how many months will the company start making profits assuming zero percent discount rate? 5 10 4 20 1The EPS of a company is Rs 20 and discount rate is 15 percent. Retained earning can be employed to earn a return of 13%. If the dividend payout ratios of 10%, 25%, 60% and 80% are considered, which of these will maximise the value?(Use walter) a. 10 percent b. 25 percent c. 60 percent d. 80 percentPlease answer fast
- BTS Inc. has concluded that P 12 million in cash is needed per week. BTS Inc. can sell its marketable securities for P 100 for each transaction if it requires additional cash. BTS Inc. should have earned 7% every week if the cash is invested in marketable securities. Using the Baumol Model (EOQ), How much should BTS Inc. raise each week through the sale of securities to minimize its total cost? (Use a number, no decimal value, no currency, no space, no commas)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?Meyer & Co. expects its EBIT to be $97,000 every year forever. The firm can borrow at 8 percent. The company currently has no debt, and its cost of equity is 13 percent. The tax rate is24 percent. What is the WACC? What are the implications of the firm’s decision to borrow? Please work on excel and show formulas
- Du Pont Analysis. Keller Cosmetics maintains an operating profit margin of 5% and asset turnover ratio of 3. a. what is ROA? b. If its debt-equity ratio is 1, its interest payments and taxes are each 8000, and EBIT is 20,000 what is its ROE? * I know ROA is Asset Turnover x OPM which gives me .15. How do I analyze this? Is it for every dollar spent on assets you get a return of 15%. Also How do I solve for b. Please give me step by step instructions. For the ROE, I was able to solve for NI given the EBIT, Interest Pay, and Tax. This is 4000. However I don't know how to solve for equity to find ROA. Can you give me step by step instructions/full explanations on how to calculate equity?I want to answer the questionSuppose that your salary is $35,000 in year one, will increase at 6% per year through year 4, and is expressed in actual dollars as follows: End of Year Salary (A$) 1 $35,000 2 37,100 3 39,326 4 41,685 If the general price inflation is expected to average 8% per year for the first two years and 7% per year for the last two years, A. What is the salary in real terms year 2? B. What is the % of increase in real terms from year 1 to year 2? (expressed in decimals)
- you brought 10,000 $ from city group, your initial margin was 55% if price went up 15% or down 20% and maintenance margin is 25% interest is 9% Div: 2$ per share 1. What is actual margin in both cases ? 2. What is the margin call price ? 3. what is your return (both cases) ?A firm has an asset turnover ratio of 5.0. Its plowback ratio is 50%, and it is all-equity-financed. If the profit margin of the firm is 3%, what is the maximum payout ratio that will allow it to grow at 5% without resorting to external financing? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Maximum payout ratio %Ace Industries has current assets equal to $10 million. The company's current ratio is 2.0, and its quick ratio is 1.5. What is the firm's level of current liabilities? What is the firm's level of inventories? Do not round intermediate calculations. Round your answers to the nearest dollar. Current liabilities: $ Inventories: $
