If equity decreased by $10 000 and total liabilities increased by $15000 over a period, by how much did total assets change? $15.000 increase $25 000 increase $5000 increase $5000 decrease
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- What caused a decrease in the current ratio?What is the rate of growth if a company's earnings and dividends increase from P3.15 per share to P4 per share during an 8-year period?A. 8%B. 3%C. 5%D. 6%E. None of the above AsapConsider the table given below to answer the following question. Asset value Earnings Year Net investment Free cash flow Return on equity Asset growth rate Earnings growth rate Present value 1 12.00 1.44 1.44 0.00 0.12 0.12 2 13.44 1.61 1.61 0.00 0.12 0.12 0.12 million 3 15.05 1.81 1.81 0.00 0.12 0.12 0.12 4 16.86 2.02 1.52 0.51 0.12 0.09 0.12 5 18.38 2.21 1.65 0.55 0.12 0.09 0.09 6 20.03 2.30 1.80 0.50 0.115 0.09 0.04 7 21.83 2.40 1.31 1.09 0.11 0.06 0.04 8 23.14 2.43 1.39 1.04 0.105 0.06 0.01 9 24.53 1.96 1.47 0.49 0.08 0.06 -0.19 Assuming that competition drives down profitability (on existing assets as well as new investment) to 11.5% in year 6, 11% in year 7, 10.5% in year 8, and 8% in year 9 and all later years. What is the value of the concatenator business? Assume 10% cost of capital. Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. 10 26.00 2.08 1.56 0.52 0.08 0.06 0.06
- What caused the fall in ROCE?Consider the table given below to answer the following question. Year Asset value Earnings Net investment Free cash flow Return on equity Asset growth rate Earnings growth rate 1 9.00 1.44 1.44 0.00 0.16 0.16 Present value 2 10.44 1.67 1.67 0.00 0.16 0.16 0.16 million 3 4 5 12.11 14.05 15.87 1.94 2.54 2.25 1.94 1.83 2.06 0.00 0.42 0.48 0.16 0.16 0.16 0.16 0.13 0.13 0.16 0.16 0.13 6 7 17.94 20.27 2.78 2.33 0.45 0.155 0.13 0.09 3.04 2.03 1.01 0.15 0.10 0.09 8 9 22.30 24.53 3.23 2.94 2.23 2.45 1.00 0.49 0.145 0.12 0.10 0.10 0.06 -0.09 Assuming that competition drives down profitability (on existing assets as well as new investment) to 15.5% in year 6, 15% in year 7, 14.5% in year 8, and 12% in year 9 and all later years. What is the value of the concatenator business? Assume 13% cost of capital. Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. 10 26.98 3.24 2.70 0.54 0.12 0.10 0.10Use the following information to answer this question. Total assets Total current liabilities Total expenses Total liabilities Total revenues Tax rate $150,000 105,000 70,000 110,000 80,000 40% After -tax cost of capital 12% Invested capital is defined as total assets less total liabilities. (round your answers te one decimal ) Capital turnover equal O A) 53.3% B) 2 OC) 6.7% D) 28.6%
- Why could ROE and ROCE move in different directions?Consider the following information:· Net income = $100 000· Gross income = $300 000· Change in book value of assets = ($50 000)· Cost of equity = 12 per centAssume this information remains unchanged over two years. Using the discounted cash flow model, what would be the value of equity at the end of year 2?Cash account (millions of dollars) Projected sales (millions of dollars) Stock price per share (monthly average) Capital structure (equity/debt ratio in percent) Liquidity ratio (current assets/ current liabilities) Earnings before interest and taxes (EBIT; in millions of dollars) Return on assets (ROA; percent) Sales revenue (millions of dollars) Current Month $33 $298 $6.60 32.8% 1.10x $15 3.32% $290 One Month Ago $57 $295 $6.50 33.9% 1.23x $14 3.25% $289 Two Three Months Months Ago Ago $51 $294 $6.40 34.6% 1.35x $13 2.98% $290 $44 $291 $6.25 34.9% 1.39x $11 3.13% $289 Four Months Ago $43 $288 $6.50 35.7% 1.25x $13 3.11% $287 Butell has announced within the past 30 days that it is switching to new methods for calculating depreciation of its fixed assets and for valuing inventories. The firm's board of directors is planning to discuss at its next meeting a proposal to reduce stock dividends in the coming year. 6. Identify which of the following loan covenants are affirmative and which…
- Please help me. Thankyou.What is the modified internal rate of return for the following cashflow? CF1 H CFo ($7,600,000) 23.14% 13.42% 19.84% 17.02% $2,800,000 i = 13% CF₂ $2,800,000 CF 3 ($1,700,000) CFA $4,550,000 CF5 $4,200,000A company has the following information: Earnings before interest and taxes Interest expense $140.00 12.00 40% 10.00 12.00 Tax rate Net change in debt Investment in total capital What is its free cash flow to equity? Do not round intermediate calculations. Round your answer to the nearest cent.
