Andyco, Inc., has the following balance sheet and an equity market-to-book ratio of 1.6. Assuming the market value ofdebt equals its book value, what weights should it use for its WACC calculation?AssetsLiabilities & Equity$1,070Debt$450Equity$620The debt weight for the WACC calculation is%. (Round to two decimal places.)

Step 1: The calculation of the market value of equity Market value of equity = Market to book…

Answered: Andyco, Inc., has the following balance…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Andyco, Inc., has the following balance sheet and an equity market-to-book ratio of 1.8. Assuming the market value of debt equals its book value, what weights should it use for its WACC calculation? Assets $1,090 Liabilities & Equity Debt $460 Equity $630 The equity weight for the WACC calculation is __ % ? (Round to two decimal places.)
Andyco, Inc., has the following balance sheet, WACC calculation? 1 and an equity market-to-book ratio of 1.7. Assuming the market value of debt equals its book value, what weights should it use for its The weight of debt for the WACC calculation is %. (Round to two decimal places.) The weight of equity for the WACC calculation is%. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Liabilities & Equity Assets $1,020 Print Debt Equity Done $410 $610 — X
Andyco, Inc., has the following balance sheet and an equity market-to-book ratio of 1.4. Assuming the market value of debt equals its book value, what weights should it use for its WACC calculation? Liabilities & Equity Assets $1,030 Debt Equity $500 $530 The debt weight for the WACC calculation is %. (Round to two decimal places.)
GNR plc. has a total debt ratio of 0.43. (Round your answers to 2 decimal places (e.g., 32.16).) Requirement 1: What is its debt–equity ratio? Debt–equity ratio Requirement 2: What is its equity multiplier? Equity multiplier
Assume the following relationship for Woody Corp: Sales/Total Assets is 1.5x, ROA is 3%, and ROE is 5.0%. Calculate the following assuming Woody uses only debt and common equity. What is the Debt-to-Asset Ratio?
A firm has a debt-to-equity ratio of 0.60 and a market-to-book ratio of 2.5. What is the ratio of the book value of debt to the market value of equity? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Bello, Inc., has a total debt ratio of .51. a. What is its debt-equity ratto? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is Its equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Debt-equity ratio b. Equity multiplier times times
Kodi Company has a debt-equity ratio of 1.33. Return on assets is 7.58 percent, and total equity is $665,000. a. What is the equity multiplier? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the return on equity? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. c. What is the net income? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. a. Equity multiplier b. Return on equity c. Net income times %
PLASMA SCREENS CORPORATION Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Investments $242,000 98,000 105,000 5,000 $ 130,000 102,000 90,000 3,000 Long-term assets: Land Equipment Less: Accumulated depreciation 580,000 890,000 (528,000) $1,392,000 580,000 770,000 (368,000) $1,307,000 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payab le Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings $ 109,000 7,000 9,000 95,000 13,000 6,000 2$ 110,000 220,000 800,000 357,000 $1,392,000 $1,307,000 800,000 173,000 Total liabilities and stockholders' equity Additional information for 2021: 1. Net income is $184,000. 2. Sales on account are $1,890,000. 3. Cost of goods sold is $1,394,250.
Pickler Company has a debt-equity ratio of 1.39. Return on assets is 7.64 percent, and total equity is $695,000. a. What is the equity multiplier? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the return on equity? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the net Income?
Mobius, Incorporated, has a total debt ratio of .61. a. What is its debt-equity ratio? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is its equity multiplier? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
You calculate that a firm has a total asset turnover of 0.12 and a profit margin of 0.92. If the firm reports that its ROE for the same time period is equal to 0.26, what must be the firms debt-to-equity ratio? Answer as a decimal (not percentage) to two decimal places.

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