15-1. (Calculating debt ratio) (Related to Checkpoint 15.1 on page 534)Sharpgas plc£m£mCurrent assets6Current liabilities8Long-term debtSharesNon-current assets30202Reserves3636You have just taken over a portfolio of bank clients including Sharpgas Plc. Their latestbalance sheet is as above. What questions would you ask immediately with regard totheir capital structure?

The balance sheet of the offered firm depicts the split of current and non-current assets, current…

Answered: 15-1. (Calculating debt ratio) (Related…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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4. You are a member of the finance staff of Orange Ltd, whose share are listed on London Stock Exchange. You have been asked to derive a weighted average cost of capital (WACC) for use in assessing a major investment in a training facility. The business’s financial statement as at 31 December 2021 shows that it has the following long-term financial capital structure: Redeemable Debt: 5,000 redeemable debts of £100 each with 12% coupon rate Preference Shares: 46,000 shares with 9% dividend rate and a par value of £10 Ordinary shares: 0.5 million shares of £1 each On 31 December 2021, the 12% redeemable debt is traded at £114 (ex-interest). It will be redeemable at par on 31 December 2022. Interest on the debt is payable annually on 31 December. On 31 December 2021, the market price of the company’s 9% preference shares is £13.5 (cum-dividend). On 31 December 2021, the ordinary shares are quoted at £1.21 each. The ordinary shareholders will receive a 7p annual dividend per share very…
Describe the importance of Capital Adequacy The Balance Sheet of a bank shows following figures with risk weights in brackets: Cash: Rs 50 crores (Risk weight 0%), SSI advances with CGF Guarantee: Rs 500 crores (Risk weight 0%), Government Approved Securities: Rs 200 crores (Risk weight 2.50%), Loans to Staff: Rs 100 crores (Risk weight 20%), Mortgage Loan: Rs 4500 crores (Risk weight 50%), Retail Loans with limit up to Rs. 5 crores: Rs 12000 crores (Risk weight 75%), Other Loan: Rs 15000 crores (Risk weight 100%), Exposure to Capital Market: Rs 200 crores (Risk weight 125%) and Capital Rs 3300 crores. Find out: Total amount of Risk Weighted Asset and Capital Adequacy Ratio.
(1) Compute debt and equity ratio for the current year and one year ago. (2) Compute debt-to-equity ratio for the current year and one year ago. (3)Compute times interest eamed for the current year and one year ago. Please avoid solutions in an image format thank you
Clayton Industries has the following account balances: Current assets Noncurrent assets The company wishes to raise $45,000 in cash and is considering two financing options: Clayton can sell $45,000 of bonds payable, or it can issue additional common stock for $45,000. To help in the decision process, Clayton's management wants to determine the effects of each alternative on its current ratio and debt-to-assets ratio. Required a-1. Compute the current ratio for Clayton's management. Note: Round your answers to 2 decimal places. Currently If bonds are issued If stock is issued $ 22,000 Current liabilities 77,880 Noncurrent liabilities stockholders' equity Currently If bonds are issued If stock is issued Current Ratio 2.44 to 1 a-2. Compute the debt-to-assets ratio for Clayton's management. Note: Round your answers to 1 decimal place. Bonds Stock to 1 to 1 Debt to Assets Ratio Additional Retained Earnings $ 9,000 50,000 48,888 % % % b. Assume that after the funds are invested, EBIT…
3. Calculate current ratio and Liquid ratio from the following: RO 152,000 RO 113,000 RO 24,000 RO 18,000 RO 8,000 Share capital Fixed Assets 5% Debentures Debtors General reserve Cash in hand and at Bank Creditors Bill Payables Stock RO 30,000 RO 20,000 RO 4,000 RO 52,000 RO 5,000 Profit and Loss A/c
PLS I NEED NEW ANSWER. DO NOT COPY FROM THE NET First Philippine Holdings Corporation Liquidity Ratio 1. Discussion and analysis of Liquidity Ratio. 2. Overview of the business performance over the past three years and discussion of the analysis of liquidity.
Following items are given for Bank of America Corp.: 1. Loans and leases outstanding 900 m 2. Total assets 1,200 m 3. Equity capital = 100 m 4. Total deposits 1,000 m 5. Nonperforming loans 50 m %3D 6. Stock price 50$ per share 7. Earnings Per Share 4$ Calculate as many of the risk measures as you can from the given data.
M7 Q1
You are the new CFO of Risk Surfing Ltd, which has current assets of $7,920, net fixed assets $17,700, curent liabilities of $4,580 and long-term debts of $5,890. Required: a. What are the three important questions of corporate finance you will need to address? Please briefly explain them and indicate how they are related to the areas in the balance sheet of a company. b. Calculate owners' equiy ana Duild a balance sheet for the company? C. How much is net working capital of the company? d. Calculate the return on assets of the company given that Return on Equity is 30%? e. What is the PE of the company total number of ordinary share outstanding of the companies is 2,000 and market price of each share is $12?
4. Assume that the same net amount of 2 million, but they are structure: following banks have the different due to the capital [10] Tanto Murity ABL 12 million 90 million 102 million Deposits Bank Capital Total Liabilities and Equity MCB 85 million 17 million 102 million Reserves Loan Total Assets 12 million 90 million 102 million Deposits Bank Capital Total Liabilities and Equity 100 million 02million 102 Reserves Loan Total Assets million Which Bank is more attractive for shareholders? Which bank is riskier in case of loan depreciation at15million? Show your calculations to support your suggestions.
Consider a bank with return on assets of .15 or 15%. The equity multiplier for this bank is 1.333. What is the return on equity of this bank?
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.

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