Equity Share Capital = 110000 6 % Preference Share Capital = 30000 General Reserve = 50000    Reserve for Contingencies = 15000 6 % Mortgage debentures = 50000 Trade Payables = 20000 Prepaid Expenses = 4000 Find Debt – Equity Ratio.

Q: A bank with $10,000 in assets has ROA =2% and ROE - 10%. What is its leverage ratio (TA/Equity)?…

A: ROA and ROE for a bank are known. Equity multiplier or the leverage ratio (TA/Equity) needs to be…

Q: Dividend payout:0.16 cent quarterly (16 quarters) Dividend growth rate:1.5% Appropriate rate of…

A: The anticipated value of an investment based on its expected future cash flows is known as intrinsic…

Q: Fill in the table using the following information. Assets required for operation: $4,000 Case A—firm…

A: If the company uses some proportion of assets by borrowing funds or debt then such a company is…

Q: Given the following information, what is the value of Long-Term Liabilities? Profits 9,000 = Fixed…

A: Long-term liabilities are the obligations of an entity which are to be repaid by the entity after a…

Q: alculate any 5 leverage ratio

A: Leverage ratios indicate the level of debt employed by the firm.

Q: Current Asset                                                120 000 Cash…

A: Current Ratio = Current Assets / Current Liabilities Quick Ratio = (Current Assets -Inventory)…

Q: Calculate WACC from following data. Risk free rate 1.63% total debt $78.93 billion Market Cap…

A:

Q: Amazon equity beta Market risk premium 1.5 5.00% 10-year Treasury 1 Jan 2020 Cost of equity 1.90%…

A: cost of equity = Risk free rate + beta * market risk premium

Q: Explain the static theory of capital structure using the following graph. Describe the meaning of…

A: The Static Theory of the Capital Structure is one of the Relevance Theory of Capital Structure of…

Q: ROA=10% ROE=11.2% Current ratio =1.5 Quick ratio=0.9 gross profit margin=24% Sales=1650000 Earning…

A: Debt Ratio:

Q: Fill in the table using the following information.Assets required for operation: $3,000Case A—firm…

A: The answer is explained below.Explanation:

Q: You have the following initial information on CMR Co. on which to base your calculations and…

A: a) Calculate WACC of company as below: Hence, the nominal WACC will be 10.06%.

Q: A=10% E=11.2% rrent ratio =1.5 ick ratio=0.9 ss profit margin=24% es=1650000 ning available for…

A: Debt ratio is the ratio calculate on total assets. It repersent the portion of assets financed from…

Q: Oasis Products, Incorporated has current liabilities = $10 million, current ratio = 1.5 times,…

A: Data given: Current liabilities = $10 million Current ratio = 1.5 times Inventory turnover ratio =…

Q: If Bulldogs' current liabilities are P1,300,000, the firm's * Bulldogs Inc. has the following…

A: Acid test ratio and current ratios are liquidity ratios. They are used to determine a company’s…

Q: Assume that cost of debt = 8%; unlevered cost of capital = 10%; systematic risk of the asset is 1.5.…

A: Value of unlevered firm can be calculated using,EBIT = 10000Tax = 34%kUL=10% (unlevered cost of…

Q: WACC 2021:  WACC= (Cost of equity x Equity Weight) + (Cost of debt x Debt Weight)  WACC= (6.59% x…

A: The Weighted Average Cost of Capital (WACC) is the average cost of financing a company's assets,…

Q: current assets is estimated at £45m. Recent profit after tax is £37m and a sector P/E ratio is 12

A: P/E ration = Market price per share / Earning per share 12 = Market Price per share /Earning per…

Q: Fill in the table using the following information. Assets required for operation: $3,800 Case A-firm…

A:

Q: Ramos Land Management has a target debt - to - value ratio of .45. The pretax cost of debt is 7.4…

A: It is a financial concept that refers to the expected rate of return that a company's shareholders…

Q: Suppose that the financial ratios of a potential borrowing firm take the following values: X₁ = Net…

A: The Altman Z-score is based on a credit strength test. It helps in determining the chances of…

Q: Suppose that XTel currently is selling at $50 per share. You buy 800 shares using $30, remainder of…

A: Rate of return on investment (ROI) is a financial metric used to evaluate the profitability of an…

Q: Case A—firm uses only equity financing Case B—firm uses 35% debt with an 8% interest rate and 65%…

A: Debt is the amount of money that a company borrows which it has to pay back with interest. Equity is…

Q: Fill in the table using the following information. Assets required for operation: $2,000 Case A—firm…

A: Rate of return on Stockholder's investment is also known as return on Equity. It is the amount…

Q: The following information is available regarding XYZ Co. sales = $250,000 net income = $35,000…

A: Here, Sales is $250,000Net Income is $35,000Dividends is $10,000Total Debt is $100,000Total Equity…

Q: Short loans:

A: Definition: Balance sheet: It is  the financial statement of company  which includes share holder's…

Q: Explain any two benefits and disadvantages of using FCFF in equity valuation. Calculate FCFF and…

A: Introduction : The FCFF valuation involves computing the value of a company by discounting back the…

Q: Ramos Land Management has a target debt - to - value ratio of .45. The pretax cost of debt is 7.4…

A: Cost of equity refers to the return which is earned over the investment amount being invested in…

Q: late any 5 leverage ratio

A: Leverage ratio indicates level of debt employed by firm.

Q: You have been presented with the following set of financial statements for National Property Trust,…

A: Solution:a.  EPS = Net income / Share outstanding            =  $ 12,400,000 / 10,000,000…

Q: Debt Ratio (current) Equity Ratio (current) Cost of Debt Market Risk Premium. Equity Beta Debt Beta…

A: Cost of capital:The term "cost of capital" refers to the expense a company incurs in order to…

Q: 3. Company WACC is 20%. Debt interest rate is 4% and D/ E ratio is 1,6. What is the cost of equity?…

A: Weighted Average Cost of Capital = WACC = 20% Cost of debt = 4% Debt equity Ratio = 1.6

Q: Equity  = 6,300,000 Debt =  3,920,000 Preferred stock   = 6,000,000 Cost of eqiuty   = 10.91% cost…

A: The WACC of the company is the average return that the company provides to its stakeholders for…

Q: A firm has 4000m in balance sheet debt (book value is equal to market value in this case) and 1000m…

A: WACC is cost of capital of company and is weighted cost of equity and weighted cost of debt and is…

Q: The Crane Products Co. currently has debt with a market value of $275 million outstanding. The debt…

A: 1) cost of debt Using financial calculator, N =15*2 =30 PMT = 1000*9%/2 =45 PV = -1418.61 FV = 1000…

Q: Sustainable Growth rate

A: No company can survive without growth. Sustainable growth rate means the growth that the company can…

Q: The company capital structure consists of debt 250000 at 0.042, preferred stock 230000 at 11% and…

A: The company’s WACC can be calculated using the appropriate cost and weights associated with it.

Q: 1 2 Debt Ratio (current) 3 4 Equity Ratio (current) Cost of Debt Market Risk Premium 5 6 Equity Beta…

A: WACC refers to the overall weighted cost of using different sources of capital like debt, bonds,…

Q: If the company’s Earnings before interest and taxes (EBIT) is OMR 500,000, the weighted average cost…

A: Market value of firm under net income approach  = EBIT /Cost of capital SO, EBIT  = Market value *…