An analyst expects a company to have AED 20,000 in total assets at year-end and AED12,000 in liabilities. The analyst's projection of total owners' equity should be closest toAED 2,000AED 3,200AED 8,000

Name: An analyst expects a company to have AED 20,000 in total assets at ye
Uploaded: 2024-03-20T06:51:32.000Z
Channel: Bartleby
Description: An analyst expects a company to have AED 20,000 in total assets at year-end and AED12,000 in liabilities. The analyst's projection of total owners' equity should be closest toAED 2,000AED 3,200AED 8,000

we know the basic accounting equation which states that Total asset is equal to Liability plus…

Answered: analyst expects a company 12,000 in…

Business

Accounting

analyst expects a company 12,000 in liabilities. The analyst's projection of total owners' equity should be closest to AED AED 2,000 AED 3,200 AED 8,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Assume there are two firms with a MV of $50,000,000. Firm A consists of 10% debt and 90% equity. Firm B consists of 40% debt and 60% equity. Assume perfect capital markets and M&M Proposition 2 holds. Which firm will have a higher expected return for equity holders? Why? For the toolhar prace ALT+F10/PC or ALT+FN+F10 (Mac).
1. If total assets is P 50,000 and 2/3 of which is total liabilities, how much is the equity? 2. If total assets is P 87,750 and it is 135% of equity, how much is the total liabilities? 3. If total liabilities is twice the amount of equity and equity is P 46,000, how much is the totalassets? 4. If equity is 4/5 of liabilities and total assets is P 90,000, how much is the total liabilities? 5. If total liabilities is 60% of assets, equity is what percent of liabilities? 6. If total assets is four times the amount of equity, total liabilities is what percent of assets? 7. If loss is P 56,000 and Income is 88,000, how much is the total expenses? 8. If total expenses is 120% of income, and income is P 85,000, how much is the profit or loss? 9. If beginning and ending equity is P 67,000 and P 88,000, respectively, how much is the total expenses if income is P 71,000, assuming there are no other transactions that affected equity? 10. Beginning total assets and total liabilities were P 40,000…
Consider a CDO with a total notional of $500 million, consisting of three tranches: Senior (75%), Mezzanine (15%), and Equity (10%). The underlying portfolio has a total expected loss of 6%. a. Calculate the expected losses for each tranche, assuming they follow the standard tranche subordination rules. b. If the actual realized losses are 30%, determine the losses allocated to each tranche. c. Plot a graph that shows how the payoff of the holders to the Mezzanine tranche owners varies with the value of the assets in the mortgage pool at the time of maturity. d. Represent this payoff as a combination of payoffs of options and risk-free debt for Mezzanine tranche. e. Suppose the CDO manager decides to create a fourth tranche, called the Super- Senior tranche, which has the highest priority in the cash flow waterfall. If the Super-Senior tranche is sized at 50% of the total notional, recalculate the expected losses for all tranches. (hint: Super- Senior tranche is created out of Senior…
Based on the information given, if the risk-free rate of interest is 3% and the market risk premium is 5%. Asset Beta Free Cash Flows (Sm) Expected Growth Rate Division Oil Exploration Oil Refining Gas & Convenience Stores 1.4 450 4.0% 1.1 525 2.5% 0.8 600 3.0% The total value of the firm is closest to: OA $21,500 O B. 531,250 OC 537,000 D.$15,000
Assume that Firm A is an all-equity firm with total assets of $1,000 and the following distribution of EBIT for the coming year: Probability EBIT Interest EBT Taxes (40%) Net Income BEP ROA ROE 1.99% 2.79% 3.49% Firm A (Unlevered) 2.32% 2.83% Bad 30% $120 SO $120 $48 $72 12.0% 7.2% Economy Average Now assume As you can calculate, the standard deviation of the ROE distribution is 1.39 percen that the firm plans to issue $300 of debt, at an interest rate of 10 percent, and use the proceeds to repurchase equity (you may ignore potential impacts on price and assume that the firm will then have $700 of equity). Determine the standard deviation of the new ROE distribution if the firm does issue this debt. 40% $150 $0 $150 -$60 $90 Good 30% $180 SO $180 -$72 $108 15.0% 18.0% 9.0% 10.8% 9.0% 10.8%
A firm with sales of $1,000,000, net profits after taxes of $60,000, total assots of $1,500,000, and totol liabilities of $750,000 has a return on equity ot Select one: O a. 15 percent. b. 20 percent. c. 4 percent. O d. 8 percent. e. None of the above
Aneka Inc. hire your consulting firm to help them estimate the cost of equity. Yield of Aneka Inc. bonds is 7.25%, and the economist company in your company believes that the cost equity can be estimated using a risk premium of 3.50% over the company's cost of debt. What is Lange's estimated cost of equity from retained earnings? a. 10.75% b. 11.18% c. 11.63% d. 12.09% e. 12.58%
An insurance company’s projected loss ratio is 79.53 percent, and its loss adjustment expense ratio is 7.51 percent. It estimates that commission payments and dividends to policyholders will add another 13.96 percent. What is the minimum yield on investments required in order to maintain a positive operating ratio? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))
Baker Industries has a profit margin of 3%, a total asset turnover of 2, total assets of $60 million, revenue of $150 million, and equity of $20 million. Compute Baker's return on equity. Question 5 options: 9.0% 45.0% 18.0% 15.0%
Triano Train Transports shows the following on their most recent balance sheet: Current Assets: 1871Total Liabilities: 1994Inventory: 458Net working Capital: 1111Total Assets: 3007Total Equity: 1636Total Debt: 2602Earnings per Share: 3.22Market Value: 60.03 You want to identify if the company is highly leveraged and therefore a higher risk for you as an investor. Specifically, you want to find out how much debt the company has in comparison to each dollar of equity. Determine which ratio to use, calculate it and put the number in the answer.
The assets of company X have a beta equal to 1. Assume that the company's debt has a beta equal to 0.5 and that X's equity has a beta equal to 2. Consider an investor who holds 10% of the company's total debt liabilities and 10% of the company's equity. The beta of the investor's portfolio is equal to A) 0.1 B)1 C) 0.25 D) 1.25