If Long Term Debt are $ 6 million including $1.5million in long term loans and total Stockholders'equity was $12 million in which $4 million is belongto preferred stocks, the Long term Debt to EquityRatio is:75%b.37.5%С.50%d.Otherwisea. The following are organizations the providedatabases of financial information worldwideexcept:O a. Robert Morris AssociatesO b. Financial TimesО с. МоodyO d. Standard & Poor

Since you have asked multiple question, we will solve the first question for you. If you want any…

If Long Term Debt are $ 6 million including $1.5 million in long term loans and total Stockholders' equity was $12 million in which $4 million is belong to preferred stocks, the Long term Debt to Equity Ratio is: а. 75% b. 37.5% С. 50% d. Otherwise

If Long Term Debt are $ 6 million including $1.5 million in long term loans and total Stockholders' equity was $12 million in which $4 million is belong to preferred stocks, the Long term Debt to Equity Ratio is: а. 75% b. 37.5% С. 50% d. Otherwise

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: nd the WACC for HHH Inc. using the following: Long Term Common Other Company Market Information Debt…

A: WACC is the expected return that the firm would pay to all its security holders. On average, each…

Q: A firm has a long-term debt-equity ratio of 0.43. Shareholders' equity is $1.3 million. Current…

A: The debt-to-capital ratio is used to measure the company’s leverage. It allows the investors to make…

Q: Need Correct answer from option

A: 1. Calculate Return on Assets (ROA):ROA = Net Income / Total AssetsROA =20,000 / 240,000 = 0.0833 or…

Q: Need answer

Q: 18. TSE has an equity multiplier of 1.88, and its assets are financed with some combinations of…

A: Equity multiplier = 1.88

Q: What is the debt ratio for a firm with an equity multiplier of 3.5? Multiple Choice 44.09…

A: Debt ratio is that ratio which shows ratio between total liabilities and total assets in the…

Q: Ware’s Autos has an equity multiplier of 2.2, and its assets are financed with only long-term debt…

A: Data given:Equity multiplier of 2.2Formula:Debt ratio=1-

Q: What is Skyler’s weighted average cost of capital for debt?

A: Weighted Average Cost of Capital is the sum of weighted cost of debt and equity. Cost of equity is…

Q: 3.4. The following information is available about Dnieper Company. Number of shares = 100,000 EBIT =…

A: PE Ratio is ratio of market price and earning of shares. Interest coverage ratio is ratio of…

Q: Assume that Firm A is an all-equity firm with total assets of $5,000 and the following distribution…

A: Standard deviation is 2.800%

Q: Provide correct solution

A: Step 1: Introduction to the Return on equityThe equity return is the total gain made by the…

Q: Need Help with this Question

A: Step 1: To find the return on equity (ROE), we can use the following formula: ROE=EquityNet…

Q: The company's capital structure is as follows DebtWeight 25%. Preferred Stock Weigh Common equity…

A: Weighted average cost of capital means the sum total of average of various cost against various…

Q: Assume that Firm A is an all-equity firm with total assets of $5,000 and the following distribution…

A: Standard deviation is 2.800%

Q: Cost of equity Cost of Debt ethod 1 25.11% (According to dividend growth model) 2.31% ethod 2 3.11%…

A: CAPM- Capital assets pricing model According to CAPM Required rate =Risk free rate +Beta x risk…

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: Red Fire has a Debt/Equity Ratio of .1, a return on sales of 3.4, and an asset turnover of 2.3. What…

A: Calculation of ROE using DuPont Formula: ROE = Return on Sales * Asset Turnover * Financial…

Q: Q-H A firm has liabilities of $50,000,000 and equity of $25, 000, 000. What is the firm's debt -…

A: Debt Equity ratio is that which shows the relationship between the debt obtained by the company and…

Q: If the cost of debt for Sohar Textiles is 8.9% (effective rate) and the after-tax cost of debt is…

A: Since, you asked multiple questions, we will answer the first question for you as per guidelines.…

Q: Provide answer

A: Approach to solving the question: To solve the problem ->Understand the relationship : Recognize…

Q: Assume JUP has debt with a book value of $20 million, trading at 120% of par value. The firm has…

A: Weighted Average Cost of Capital ("WACC") is the overall cost of capital for the company for all the…

Q: Firm A and B have total debt ratios of 45% and 35% and ROA of 10% and 15%. Which firm has a greater…

A: Firm AFirm BTotal debt ratio45%35%ROA10%15%

Q: E BE if 17.50 0:90 % rD BD mm 6% TA BA DV 0.00 19 % 12.90% 0.90 0.40

A: The capital asset pricing model aids analysts and investors in calculating the expected return on…

Q: A firm has a debt total asset ratio of 74 percent and a return on total assets of 13 percent. What…

A: debt total asset ratio = da = 74%Return on total assets = roa = 13%

Q: Answer

A: Step 1: Given - Debt equity ration d/e = 45 % = 0.45 Total debt d = 11700 So 11700…

Q: Schmidt and Sons Co. has an optimal debt-equity ratio of 1.5. To issue new equity, the company must…

A: The flotation costs for the company refer to the costs that the company bears to issue new equity or…

Q: a) What is the nominal weighted-average cost of capital (WACC) for this project? b) As CFO, do you…

A: WACC The Weighted Average Cost of Capital (WACC) shows the after-tax cost of capital from all…

Q: Find the debt-to-value ratio for a firm with a debt-to-equity ratio of 4½.

A: Debt-to-equity ratio-Also known as gearing ratio, this ratio calculates the weight of total debt…

Q: Consider the following average annual returns: Average Return Investment Small Stocks 23.5% S&P 500…

A: The difference between the average return of corporate bonds and the average return of treasury…

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: Using carrot corp., what is the debt-to-equity ratio?

Q: 5. You are given the following information for company's Financial: Long-term debt outstanding:…

A: The cost of capital is the return required by a corporation to justify the expense of a capital…

Q: What is the debt ratio for a firm with an equity multiplier of 3.5? ____ 44.09 percent ____ 58.51…

A: Debt ratio of a firm measures the weightage of debt in the total assets held by the firm.

Q: Assume Skyler Industries has debt of $4,950,000 with a cost of capital of 7.2% and equity of…

A: Weighted average cost of capital means on an average capital raising costs how much for the company.…

Q: Given the following information: Percent of capital structure: Debt Preferred stock Common equity…

A: Cost of each source of capital is calculated below After tax cost of debt = Bond yield to…

Q: If a company issues common stock and coupon bonds and the debt-to-equity ratio are 0.85, the cost of…

A: Given information Debt Equity ratio = 0.85 Cost of equity = 12% Pretax cost of debt = 7% Tax rate =…

Q: Columbus Chicken has a debt-equity ratio of 1.1 and its return on assets is 8.9 percent, and total…

A: Debt equity ratio = de = 1.1Return on Assets = ROA = 8.9%Total Equity = e = $684,000

Concept explainers

Debenture Valuation

A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.

Note Valuation

It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like:

Question

If Long Term Debt are $ 6 million including $1.5
million in long term loans and total Stockholders'
equity was $12 million in which $4 million is belong
to preferred stocks, the Long term Debt to Equity
Ratio is:
75%
b.
37.5%
С.
50%
d.
Otherwise
a.

The following are organizations the provide
databases of financial information worldwide
except:
O a. Robert Morris Associates
O b. Financial Times
О с. Моody
O d. Standard & Poor

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A firm has a debt-to-equity ratio of 2. What is its equity multiplier? 01 O 2.5 03 O 1.5 O 2
What is the debt ratio for a firm with a debt-equity ratio of 0.5? Multiple Choice O 35% 33.3% 54% 66.7%
Green Fire Company has a debt-equity ratio of .75. Return on assets is 2.25 percent, and total equity is $800,000. �What is its equity multiplier? Question 5 options: 2.75 0.88 1.98 2.40 1.75
Dividends per share are forecasted to be $1.25, $1.30, $1.35, and $1.35 for years 1 through 4 respectively. Earnings per share are forecasted to be $3.70, $4.00, $4.50, and $5.50 for years 1 through 4 respectively. The cost of equity capital is 7%. The cost of debt capital is 5%. The weighted average cost of equity capital is 6%. Using the abnormal earnings growth model, calculate year 2 cumulative dividend earnings.
Columbus Chicken has a debt-equity ratio of 1.7 and its return on assets is 13 percent, and total equity is $769,000. What is the net income? Question 14 options: $268,119 $269,919 $272,419 $275,619 $278,419 $281,119
If a bank has the following ratios, it can pay up to of its earnings as dividends. Tier 1 leverage = 4.7% Tier 1 common equity risk-based = 7.2% %3D Tier 1 risk-based 8.3% Total capital risk-based = 11%
Complete a,b,&c please
Question: Samuelson's has a debt-equity ratio of 45 percent, sales of $11,000, net income of $2,300, and total debt of $11,700. What is the return on equity? a. 4.50 percent. b. 20.91 percent. c. 8.85 percent. d. 19.66 percent. e. 6.10 percent.
Which of the following capital structures has the highest EBIT-EPS break-even point compared to an all equity capital structure? a. 25% debt / 75% equity b. 75% debt / 25% equity c. 50% debt / 50% equity d. 95% debt / 5% equity
Subject:- finance
You have been hired by the CFO of Lugones Industries to help estimate its cost of common equity. You have obtained the following data: (1) rd = yield on the firm's bonds = 7.00% and the risk premium over its own debt cost = 4.00%. (2) rRF = 5.00%, RPM = 6.00%, and b = 1.25. (3) D1 = $1.20, P0 = $35.00, and g = 8.00% (constant). You were asked to estimate the cost of common based on the three most commonly used methods and then to indicate the difference between the highest and lowest of these estimates. What is that difference? 1.13% 1.50% 1.88% 2.34% 2.58%
Para Inc is trading at a forward (EV/FCFF1) Ratio of 20, a forward (EV/ (EBIT1 (1-Tc)) ratio of 10 and (EV/ Capital) ratio of 2. Based on the information, answe the following A. Para Inc. Return on capital equal to ? B. Para Inc. Growth rate equal to ? C. Weighted average cost of capital equal to?