Capital structure analysis . Last year the Rodoelea products company had $146 million in annual sales and a net profit margin of 9.3%. In addition, Rondoeleas average tax rate was 30 percent. If Rondoelea had $43 million of debt outstanding with an average interest rate of 10.4 percent, what is the firm's times interest earned ratio?

Q: Use the following information to compute the weighted average cost of capital (WACC) of GoGo Inc.…

A: WACC represents the average rate of return a company is expected to pay to its investors (both debt…

Q: (Capital structure analysis) Last year the Rondoelea Products Company had $142 million in annual…

A: Given:Annual sales = $142 millionNet profit margin = 9.6%Tax rate = 30%Debt = $45 millionAverage…

Q: a firm has a target debt-equity ratio of 0.35. Its cost equity is 11 percent and its before tax cost…

A: The WACC of a company refers to the average profits that the company provides to all its…

Q: Last year Poncho Villa Corporation had an ROA of 16 percent and a dividend payout ratio of 25…

A: Internal growth rate=(ROA*Retention ratio)/[1-(ROA*Retention ratio)]Retention ratio=1-Dividend…

Q: Beach & Company reported EBIT grow at a rate of 5 rate for the fo equity beta is 1.25, the risk-free…

A: EBIT$40.00Depreciation$18.00Capital expenditure$8.00Growth rate5%Tax rate21%Debt to equity…

Q: Am. 205.

A: I'd be glad to help you with the Restex valuation problem, but there seems to be a discrepancy in…

Q: A company has a beta of 1.4, pre-tax cost of debt of 5.9% and an effective corporate tax rate of 25…

A: WACC means weighted average cost of capital.It is calculated as follows:-WACC =…

Q: а. samm Corp had salės of $300 illion, a net pront margin of 8% and a dividend payout ratio of 30%.…

A: Sales = 300,000,000 Net Income = Net Profit Margin * Sales Net Income = 8%*300,000,000 Net Income =…

Q: Calculating Weighted Average Cost of Capital and Economic Value Added (EVA) Ignacio, Inc., had…

A: Weighted average cost of capital determines the actual cost of capital which include weight of cost…

Q: Am.204.

A: a) Finding the Expected Future Growth RateWe can use the Constant Growth Dividend Discount Model…

Q: Hartman Motors has $24 million in assets, which were financed with $6 million of debt and $18…

A: Formula: Beta(levered) = Beta(unlevered) * [1 + {(1 -tax rate)*(Debt /Equity)}]

Q: Standard, Inc. reported EBIT of $35 million for last year. Depreciation expense totaled $20 million…

A: Value of equity is market capitalisation of the company and can be obtained by deduction of value of…

Q: A company has a total return on capital before tax of 10%. The interest rate on debt is 4% and the…

A: The company first of debt which is said to be the weighted average cost of capital which consist of…

Q: Sonova corporation has an operating income of $240000 and a 40% tax rate The firm has short term…

A: The operating profit (EBIT) is $240,000.The tax rate is 40%.The short term is $115,000 and long-term…

Q: A company has a beta of 1.8, pre-tax cost of debt of 5% and an effective corporate tax rate of 20%.…

A: Weighted average cost of capital refers to the overall cost of company's capital structure. This…

Q: Petra plc. has a current and target leverage ratio of 0.8, the finance cost from loans is 16 per…

A: Weighted cost of capital: It can be defined as the rate that is paid by the company on the average…

Q: Benjamin Manufacturing has a target debt-equity ratio of .45. Its WACC is 11.2%, and its cost of…

A: The cost of equity signifies the expected rate of return a company needs to deliver on its equity…

Q: FinCorp's free cash flow to the firm is reported as $235 million. The firm's interest expense is $28…

A: The Cost of equity is the total return required on investment by an equity shareholder or required…

Q: NoNuns Cos. has a 25 percent tax rate and has $302.40 million in assets, currently financed entirely…

A: Expected EPS is caluclated as the sum of the product of probability percentage and EPS in each stae.…

Q: firm for the following: a. Currently, new bond issues with a credit rating and maturity similar to…

A: We need to compute cost of capital of each component.

Q: Skunk Products' EBIT is $1000, its tax rate is 35%, depreciation is $100, capital expenditures are…

A: Given EBIT is $1000 Tax rate is 35%

Q: (Capital structure analysis) Last year the Rondoelea Products Company had $138 million in annual…

A: The TIE ratio refers to the measurement of the company’s ability to cover the interest obligations…

Q: GTB, Incorporated has a 21 percent tax rate and has $100 million in assets, currently financed…

A: EPS is earning per share and that profit earned for each shareholder by the company in the current…

Q: Am. 113.

A: Sales for the current year is $4,900,000Profit margin is 30%The retention ratio is 20%Expected sales…

Q: what is the firm's internal growth rate (IGR) if ROA is 14.5%, ROE is 18.8%, the firm retains 65% of…

A: Internal growth rate can be calculated from return on assets and retention ratio.

Q: (Individual or component costs of capital) Compute the cost of capital for the firm for the…

A: Part-A Yield 8.77% Tax rate 34% Part-B Dividend Last year  $   1.09 Growth rate 5.80%…

Q: Stevenson's Bakery is an all-equity firm that has projected perpetual EBIT of $204,000 per year. The…

A: We are given the following data -EBIT$204,000Cost of equity14.5%Tax rate39%Cost of borrowing…

Q: Beach & Company reported EBIT of $40 million for last year. Depreciation expense totaled $18 million…

A: Value of a company can be found as the present value of the free cash flow of the company based on…

Q: Currently bonds with a similar credit rating and maturity as the firm's outstanding debt are selling…

A: Cost of capital is money to be paid by the company for using money through sources of capital.

Q: A company is financed with equity of $4.5 million and a bank loan of $2.5 million with an interest…

A: Return On Equity refers to the percentage of earnings available to the equity shareholders.Degree of…

Q: The Indy Company experiences the following annual incomes over the last five years: $60,000,…

A: Step 1: Calculate Average EarningsThe earnings provided for the last five years are $60,000,…

Q: Munich Re Inc. is expected to pay a dividend of $4.82 in one year, which is expected to grow by 4% a…

A: The weighted average cost of capital refers to the average capital expense of the company that it…