Karsan Otomativ had 757 million shares outstanding with a book value of $41.0 per share in 2020. The market price of a sharewas $93.50. Karsan Otomativ had a long term debt of $34.50 that was selling at par.a. Calculate Karsan Otomativ's book debt-to-value (D/V) ratio.(Intermediate calculations should not be rounded. Enter your answer as a decimal rounded to 2 decimal places.)b. Calculate Karsan Otomativ's market debt-to-value (D/V) ratio.(Intermediate calculations should not be rounded. Enter your answer as a decimal rounded to 2 decimal places.)c. Which of the above is an appropriate measure to use when determining a company's cost of capital?a. Book debt-to-value ratiob. Markeet debt-to-value ratioC. Measure

Book value of debt It is the total amount the company owes, which is recorded in the company books.…

Answered: Karsan Otomativ had 757 million shares…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Phone, Inc., has an equity multiplier of 1.36, total asset turnover of 165, and a profit margin of 8 percent. What is the company's ROE? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) RO
Kaye's Kitchenware has a market/book ratio equal to 1. Its stock price is $12 per share and it has 4.9 million shares outstanding. The firm's total capital is $120 million and it finances with only debt and common equity. What is its debt-to-capital ratio? Round your answer to two decimal places. %
common stock? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is the firm's EV/EBITDA? Until not round intermediate calculations, Round your answer to two decimal places.
Rare Earth Corp. is trading at a forward P/D (price-to-dividend) ratio of 100, a forward P/E ratio of 50 and a P/B ratio of 12. What is Rare Earth Corp's implied cost of equity ( re ) equal to:
FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 10,000 bonds. Suppose the common shares are selling for $27 per share, the preferred shares are selling for $14.50 per share, and the bonds are selling for 98 percent of par.What weight should you use for debt in the computation of FarCry’s WACC? (Round your answer to 2 decimal places.)
If a certain stock sells for 626.659 dollars on the NYSE, how much will it sell for, in dollars, on the LSE(London stock exchange). Remember that the distance between NYSE and LSE is about 3,460 miles.
Globex Corp.'s debt has a market value of $147,267 million, and Globex Corp. has no preferred stock. If Globex Corp. has 225 million shares of common stock outstanding, what is Globex Corp.'s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.)
Nakamura, Incorporated, has a total debt ratio of .57, total debt of $317,000, and net income of $38,750. What is the company’s return on equity? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
In 2018, Caterpillar Inc. had about 710 million shares outstanding. Their book value was $38.0 per share, and the market price was $85.00 per share. The company's balance sheet shows that the company had $29.50 billion of long-term debt, which was currently selling near par value. a. What was Caterpillar's book debt-to-value ratio? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.) b. What was its market debt-to-value ratio? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.) c. Which measure should you use to calculate the company's cost of capital? a. Book debt-to-value ratio b. C. Markeet debt-to-value ratio Measure
Algo Plc reported total revenue for 2019 of £1.3 million. Algo's 2019 shares outstanding were 1.4 million. The price/sales (P/S) ratio for Micro Plc, a close competitor of Algo, is 9.5. What could Algo's price per share be based on the data given (round it to two decimal points)?
CSH has EBITDA of $5 million. You feel that an appropriate EV/EBITDA ratio for CSH is 7. CSH has $6 million in debt, $3 million in cash, and 750,000 shares outstanding. What is your estimate of CSH's stock price? The estimate of CSH's stock price is (Round to the nearest cent.)
Hank Corp.'s common stock currently sells for $53 per share. The most recent dividend (Do) was $2.48, and the expected growth rate in dividends per year is 7%. The cost of common equity, Re, is ____%. Round your final answer to 2 decimal places (example: enter 12.34 for 12.34%), but do not round any intermediate work in the process.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS