Kaye’s Kitchenware has a market/book ratio equal to 1. Itsstock price is $12 per share and it has 4.8 million shares outstanding. The firm’s total capital is $110 million and it finances with only debt and common equity. What is itsdebt-to-capital ratio?

Q: Unida Systems has 46 million shares outstanding trading for $12 per share. In addition, Unida has…

A: Number of shares outstanding = 46 millionPrice per share = $12Total Equity = 46 million × $12 = $552…

Q: mon, common equity with a book value or $9 1 What weights should MV Corporation use in its WACC?…

A: WACC (Weighted Average Cost of Capital): WACC also known as a firm's average cost is computed by…

Q: James Madison Ltd. expects a income of 200,000. The comp 5% of 1,000,000 bonds payab equity…

A: In the net income approach we calculate the value of equity and than we add debt to that and get the…

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: Jiminy Cricket Removal has a profit margin of 8 percent, total asset turnover of 1.0, and ROE of…

A: We know that the return on equity (ROE) is determined by multiplying the profit margin, total asset…

Q: and its stock price is P32. per share. What is Alessandra Company market/book Alessandra Company has…

A: Calculation of market to book ratio are as follows

Q: What is the company's cost of levered equity?!

A: Cost of equity is the rate at which company has acquired funds in exchange for the equity shares. It…

Q: Okonjo Economics has a debt-equity ratio of .38. All of the firm's outstanding shares were purchased…

A: The return that investors require on their investment is commonly known as the "required rate of…

Q: Jack Corporation has a profit margin of 9.70 percent, total asset turnover of 1.50, an ROF of 18.62…

A: ROE=18.62Profit margin=9.70Assets turnover=1.50How much is debt-equity ratio.

Q: Universe Company finances its business with 70% equity, 10% preferred stock and 20% loan.  Cost of…

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

Q: Azoka Ltd has a market debt-equity ratio of 0.5. Assume its current debt cost of capital is 6.5%,…

A: The weighted average cost of capital (WACC) is the minimum rate of return that a company is expected…

Q: Hook Industries' capital structure consists solely of debt and common equity. It can issue debt at…

A: Gordon's growth model is one of the most commonly used variations of the dividend discount model.…

Q: Jack Corp. has a profit margin of 3.5 percent, total asset turnover of 2.9, and ROE of 18.58…

A: Given information : Profit margin       0.035 Total asset turnover 2.9 Return on equity…

Q: Kaye's Kitchenware has a market/book ratio equal to 1. Its stock price is $14 per share and it has…

A: The debt-to-capital ratio refers to the measurement of the leverage associated with the company and…

Q: ABC Inc. borrows money at 8%, sells bonds at 6%, and the purchasers of common stock require 11% rate…

A: WACC stands for weighted average cost of capital for a corporation. Based on the company's current…

Q: Suppose Rocky Brands has earnings per share of $2.44 and EBITDA of $31.3 million. The firm also has…

A: The ratio used to value a business that compares the current share price to earnings per share (EPS)…

Q: Baker Industries' net income is $24,000, its interest expense is $4,000, and its tax rate is 25%.…

A: The objective of the question is to calculate the Return on Equity (ROE) and Return on Invested…

Q: You are given the following information: Stockholders' equity as reported on the firm's balance…

A: The share price, sometimes referred to as the stock price, is the amount needed to buy one share of…

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: Baker Industries’ net income is $24,000, its interest expense is $4,000, and its tax rate is 25%.…

A: ROE :— The return on equity is a measure of the profitability of a business in relation to the…

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: 89. Delta Mowers has a debt-equity ratio of 1.2. Its WACC is 10.1 percent, and its cost of debt is…

A: Given : WACC=10.1%Cost of debt (kd)=7.5% DebtEquity=12 Which means : Weight of debt (wd)=13Weight of…

Q: Garwryk, inc., which is financed with debt and equity, presently has a debt ratio of 78 percent.…

A: Total assets depend on the components of debt and equity and changes according to that.

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: The firm's profit margin is 2.5%, sales are $5 million, 400,000 common shares are outstanding.…

A: In the given question we are required to calculate the price per share using the PE multiple…

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: CoffeeCarts has a cost of equity of 15.9%, has an effective cost of debt of 4.2%, and is financed…

A: The objective of the question is to calculate the Weighted Average Cost of Capital (WACC) for…

Q: a. What is Unida's unlevered cost of capital? Unida's unlevered cost of capital is 12.7%. (Round to…

A: Weighted average cost of capital is the weighted cost of equity and weighted cost of debt. This is…

Q: Jordan, Corp., has debt outstanding with a market value of $3 million. The value of the firm would…

A: Bankruptcy Cost:The dollar value that a firm incurs for undertaking bankruptcy procedure is the…

Q: Spock Enterprises has a market value of $100 million in debt outstanding. They also have a market…

A: Total market value of debt = $100 Million Total market value of equity = $400 Million

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: Given below is some information about Apsara Ltd:Capital structure of Apsara Ltd.: Book value of…

A: The weighted average cost of capital (WACC) is the average rate of interest required on the overall…

Q: ZZ bank offers a personal loan of RM30,000 with an interest rate of 4.5% compounded monthly. The…

A: In finance, the term "loan" represents an amount of money borrowed by someone from another person at…

Q: Baker Industries' net income is $21,000, its interest expense is $4,000, and its tax rate is 25%.…

A: There are different ways to measure return on investment. Some of these measures are ROE and ROIC…

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: Unida Systems has 43 million shares outstanding trading for $12 per share. In addition, Unida has…

A: Capital structure of a firm had been given, along with the cost of debt and equity. The unlevered…

Q: Baker Industries' net income is $27, 000, its interest expense is $4,000, and its tax rate is 25%.…

A: The return on equity assesses a company's profitability in relation to the equity of its owners. It…

Q: Phelps Labs has assets of $418,000, current liabilities of $126,000, and long-term liabilities of…

A: A type of publicly traded security that provides ownership and voting rights to its holder is term…

Q: Bruder & Co is a company with a market debt-equity ratio of 1.00. Suppose its current cost of debt…

A: a) Determine the cost of equity after the transaction:We'll use the Capital Asset Pricing Model…

Q: Which estimate is likely to be more accurate? (Select from the drop-down menu.) Hint: The more…

A: The P/E ratio ca be used to estimate the growth potential of a company. If the P/E ratio of the firm…

Q: CoffeeCarts has a cost of equity of 15.2%, has an effective cost of debt of 3.8%, and is financed…

A: A company's average after-tax cost of capital from all sources, including common stock, preferred…

Q: Baker Industries’s net income is $24,000, its interest expense is $5,000, and its tax rate is 25%.…

A: To calculate Baker Industries' Return on Equity (ROE) and Return on Invested Capital (ROIC), we need…

Q: Kaye's Kitchenware has a market/book ratio equal to 1. Its stock price is $12 per share and it has…

A: Debt is very important for the business and also interest on the debt is tax deductible so it…

Q: Home Demo reports the following: Total liabilities = $38,633 million and Total assets = $42,966…

A: Debt Ratio :— It is the ratio between total debt and total assets.    Levered Company :— Company…

Q: baker industries net income is $24,000 ,its interest expense is $6000, and its take rate is 40%. it…

A: Return on Invested Capital (ROIC) is a metric that assesses a company's capacity to earn returns on…

Q: Yyristki Inc. has an equity market value of $4,750,390 and debt market value of $3,379,920. The cost…

A: Weighted Average Cost of Capital (WACC) is the overall cost of capital from all the sources of…