If a company has an enterprise value of $1500 million, and equity value of $1200 million. Which of the followings are right? (two correct answers) the company has more debt than cash. the company has more cash then debt. the company has a net debt $300 million. the company has a debt $300 million. the company has a net debt -300 million.

Q: Hutchinson Corporation has zero debt - it is financed only with common equity. Its total assets are…

A: Debt ratio is the measure which is used to help the entity to know if it would be able to pay off…

Q: KCCO, Inc., has current assets of $5,200, net fixed assets of $25,200, current liabilities of…

A: Net working capital is a financial concept that measures the ability of a company to meet its…

Q: Goldilochs Inc. reported sales of $8 million and net income of $1.5 million. The firm has $10.5…

A: The sustainable growth rate is the maximum growth rate that a company can sustain without having to…

Q: Beranek Corp has $560,000 of assets (which equal total invested capital), and it uses no debt-it is…

A: Total Assets / Equity = $560,000Desired debt to total capital ratio = 40% or 0.4

Q: Hutchinson Corporation has zero debt - it is financed only with common equity. Its total assets are…

A: Debt ratio is the measure which is helpful for the entity to know if it would be able to cover its…

Q: quidity Analysis) The King Carpet Company has $3,160,000 in cash and a total of $11,160,000 in…

A: New current liability = $6910000 Less:- Short term note =$1535000           Current liability     =…

Q: A company has 200mm of debt, 50mm of cash, 25mm shares of stock trading at $10. It has operating…

A: Enterprise Value = Market Cap + Value of Debt + Cash EBITDA = EBIT + Depreciation and Amortization

Q: A company starts with $1 billion in assets, $400 million in owners’ equity & $600 million in debt.…

A: Leverage ratios are the financial ratios which is used to measure a company’s capital structure,…

Q: If the value of invested capital today is $4 million and this firm has $2 million in…

A: Invested Capital: It refers to that money that is invested by shareholders, lenders, and debt…

Q: Based on the corporate valuation model, the value of a company's operations is $1,700 million. The…

A: One way to think of ownership in a firm is as a stock, which is also called an equity or share. A…

Q: Wims, Inc., has current assets of $5,760, net fixed assets of $25,500, current liabilities of…

A: Shareholders are the owners of the company, the funds provided by the shareholders to the company is…

Q: Suppose Rocky Brands has earnings per share of $2.39 and EBITDA of $29.7 million. The firm also has…

A: Enterprise value refers to the total value of a firm. In other words it is the price at which the…

Q: Wims, Inc., has current assets of $5,200, net fixed assets of $25,200, current liabilities of…

A: The fund that a company raised by issuing shares and retaining the profits for the business…

Q: Suppose Logan Inc. has earnings per share of $3.45 and EBITDA of $45 million. Logan Inc. also has 5…

A: Enterprise value =Multiple * EBITDA.=7∗$45=$315Million

Q: Suppose Rocky Brands has earnings per share of $2.35 and EBITDA of $30.8 million. The firm also has…

A: The price-to-earnings ratio is a measure that compares the current market rate of the share to the…

Q: is currently operating at maximum capacity. The firm has a net income of $2,250, tot assets of…

A: To increase sales there is need investment in assets and that investment can be managed internally…

Q: Suppose Rocky Brands has earnings per share of $2.19 and EBITDA of $31.2 million. The firm also has…

A: Enterprise value refers to the firm's total worthiness. In other words, it is the price at which the…

Q: Carter Corporate has current assets of $120 million and inventory equal to $30 million. If Carter’s…

A: To calculate the current ratio we will use the below formula   Current ratio = Current…

Q: Suppose Rocky Brands has earnings per share of $2.30 and EBITDA of $30.7 million. The firm also has…

A: Stock value using P/E ratio = P/E * EPS.Value of Rock Brand  using P/E ratio = Stock value using P/E…

Q: The current balance sheet of Bramble Inc. reports total assets of $24 million, total liabilities of…

A: The ratio analysis helps to analyse the financial statements of the business. The debt to assets…

Q: What is the price of a share of the company's common stock? Do not round intermediate calculations.…

A: Information Provided: Stockholders equity = $5.75 billion Price/Earnings ratio = 9.5 Common shares…

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: Suppose Rocky Brands has earnings per share of $2.35 and EBITDA of $31.4 million. The firm also has…

A: Enterprise value refers to the firm's total worthiness. In other words, it is the price at which the…

Q: Bank Y and Bank Z both have assets of $1 billion. The return on assets for both banks is the same.…

A: Equity is the ownership of a person or business within a company and Debt is borrowed money which…

Q: A company has total owners' equity of $0.622 billion, market-to-book ratio of 4.2, its leverage…

A: The value of an enterprise can be found by using the following equation where the MV of equity will…

Q: ABC Corp is a manufacturing company with the following information: 1. Financial Statements: • Net…

A: The objective of the question is to calculate the intrinsic value per share for ABC Corp using…

Q: A company has an enterprise value of $20mm.  It has debt outstanding of $4mm.  It has net income of…

A: Enterprise Value = Total Equity Value + Debt Value Debt Value = $4mm Enterprise Value = $20mm

Q: You have completed a first pass of a pro-forma balance sheet for Farmer Company. This reveals…

A: Given information:

Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.