IZAX, Co. had the following items on its balance sheet at the beginning of the year: Liabilities and Equity Assets Cash PPE $53,600 Debt $346,700 Equity Its net income this year is $20,200 and it pays dividends of $4,800. If its assets grew at its internal growth rate, what is its new D/E ratio? $99,000 $301,300 The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. REED The internal growth rate is%. (Round to two decimal places.) The ending total assets will be $ (Round to the nearest dollar) The debt'equity ratio will be (Round to three decimal places)
IZAX, Co. had the following items on its balance sheet at the beginning of the year: Liabilities and Equity Assets Cash PPE $53,600 Debt $346,700 Equity Its net income this year is $20,200 and it pays dividends of $4,800. If its assets grew at its internal growth rate, what is its new D/E ratio? $99,000 $301,300 The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. REED The internal growth rate is%. (Round to two decimal places.) The ending total assets will be $ (Round to the nearest dollar) The debt'equity ratio will be (Round to three decimal places)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:IZAX, Co. had the following items on its balance sheet at the beginning of the year.
Liabilities and Equity
$53,600
Debt
$346,700 Equity
Assets
Cash
PPE
Its net income this year is $20,200 and it pays dividends of $4,800. If its assets grew at its internal growth rate, what is its
new D/E ratio?
$99,000
$301,300
The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing
capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in
anticipation of the return of standard depreciation practices during your career.
HEKID
The internal growth rate is%. (Round to two decimal places.)
The ending total assets will be $
(Round to the nearest dollar)
The debt'equity ratio will be
(Round to three decimal places)
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