A firm has total assets of $1,000,000. It has $300,000 in long-term liabilities. Thestockholders equity is $300,000. What is the total debt ratio? My Bad Surgery Centers of America has a debt-equity ratio of 2. What is My Bad total debt ratio? Oops Van Lines has a total debt ratio of 0.5, total debt of $100,000, net income of$20,000. What is the return on equity?

A firm has total assets of $1,000,000. It has $300,000 in long-term liabilities. Thestockholders equity is $300,000. What is the total debt ratio? My Bad Surgery Centers of America has a debt-equity ratio of 2. What is My Bad total debt ratio? Oops Van Lines has a total debt ratio of 0.5, total debt of $100,000, net income of$20,000. What is the return on equity?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 2P: Vigo Vacations has $200 million in total assets, $5 million in notes payable, and $25 million in...

See similar textbooks

Similar questions

Company X is competing with company Y. These are their ratios: x y Debt Ratio = .437 Debt Ratio = .599 Debt Equity Ratio = .453 Debt Equity Ratio = .965 Interest Earned = 15.854 Interest Earned = 5.67 Based on Long-Term Debt paying ability, are any of them doing well? which company is doing better?
The Ashwood Company has a long-term debt ratio of 0.50 and a current ratio of 1.60. Current liabilities are $970, sales are $5,175, profit margin is 9.80 percent, and ROE is 17.60 percent. What is the amount of the firm's net fixed assets? Hint: This is another complex problem that requires a number of steps. Remember that CA + NFA=TA. So, if you find CA and TA, then you can solve for NFA Helpful Equations: Long-term debt ratio - LTD/(LTD + TE) CR-CA/CL PM-NI / Sales ROE-NI/TE O $3,851.53 O $3,601.92 O $5,181.07 O $6.733.07 O $2.881.53
Company A's simple EPS is $1 and diluted EPS is $.50. Company B's simple EPS is $1.5 but his diluted EPS is $.25. What would this tell you about the company? Next, suppose Company A's debt to equity ratio is 2 and Company's B's debt to equity ratio is .5. What would this tell you about the company? Besides profitability, what would the measures about tell you about how the company raises money?
Vigo Vacations has $300 million in total assets, $7 million in notes payable, and $35 million in long-term debt. What is the debt ratio? Do not round intermediate calculations. Round your answer to the nearest whole number.
Suppose PayPal (PYPL) has no debt and an equity cost of capital of 9%. The average debt-to-value ratio for the credit services industry is 15.1%. What would its cost of equity be if it took on the average amount of debt for its industry at a cost of debt of 6.1%? (Round to two decimal places.)
Winter's Toyland has a debt-equity ratio of 1.00. The cost of debt is 8 percent and the required return on assets is 15 percent. What is the cost of equity if you ignore taxes? Write your answer as a percent rounded to two digits, but don't include the % sign (i.e. write 12.63, not 0.1263). Numeric Response
Winter's Toyland has a debt-equity ratio of 1.00. The cost of debt is 10 percent and the required return on assets is 18 percent. What is the cost of equity if you ignore taxes? Write your answer as a percent rounded to two digits, but don't include the % sign (.e. write 12.63, not 0,1263) Numeric Response
Suppose Microsoft has no debt and a WACC of 8.7%. The average debt-to-value ratio for the software industry is 8.6%. What would be its cost of equity if it took on the average amount of debt for its industry at a cost of debt of 6.4%? ... The cost of equity is ☐ %. (Round to two decimal places.)
A firm has the following accounts; sales = $36,700,000, total debt = $9,870,000. The firm has the following ratios; debt ratio = 33%, ROE = 14.4%. What is the firm's ROA? 9.65% O 42.49% 29.24% O 7.86%
Use the following scenario to solve A-C. H2X Incorporated has accounts payable of $400,000 (a typical amount for the company, non-interest bearing), a bank loan of $700,000 at 9% interest rate, a bank loan of $1,000,000 at 6.5% interest rate, and equity of $2,800,000. Its income tax rate is 32%. Management estimates the company’s cost of equity is 14%. A. What is the company’s weighted average cost of capital on non-interest-bearing debt, interest bearing debt, and equity (or total invest capital)? a. 11% b. 10% c. 9% d. 12% B. Company managers are considering selling more stock to raise $500,000 of new equity to purchase $500,000 of new manufacturing equipment. What would the new weighted average cost of capital be if this plan were implemented? a. 10% b. 12% c. 9% d. 11% C. Company managers are projecting that the new manufacturing equipment from question 15 will produce a return on assets of 11%. Should the company proceed with this plan? a. No, because…
A firm has been experiencing low profitability in recent years. Perform an analysis of the firm's financial position using the DuPont equation. The firm has no lease payments but has a $3 million sinking fund payment on its debt. The most recent industry average ratios and the firm's financial statements are as follows: Industry Average Ratios Current ratio 2 × Fixed assets turnover 6 × Debt-to-capital ratio 19 % Total assets turnover 3 × Times interest earned 7 × Profit margin 5.75 % EBITDA coverage 9 × Return on total assets 17.25 % Inventory turnover 7 × Return on common equity 19.40 % Days sales outstandinga 23 days Return on invested capital 17.30 % aCalculation is based on a 365-day year. Balance Sheet as of December 31, 2021 (millions of dollars) Cash and equivalents $ 77 Accounts payable $ 48 Accounts receivables 72 Other current liabilities 29 Inventories 178 Notes payable 58 Total current assets $ 327…
Suppose Microsoft has no debt and a WACC of 9.3 %. The average debt-to-value ratio for the software industry is 6.7 %. What would be its cost of equity if it took on the average amount of debt for its industry at a cost of debt of 6.4 %?