Question: Philips, Inc. has a debt ratio of 15% and ROE =13%. What is Phillips' ROA?
Q: None
A: The Operating ROA or Return on Assets pertains to the ratio of operating income to assets. It…
Q: 14. Bethlehem Corporation has a return on assets ratio of 6 percent. If the debt to total assets…
A: The return on equity is computed by dividing the Net income by the equity.
Q: None
A: Step 1: Calculate the after-tax cost of debt:After-tax cost of debt = Pretax cost of debt * (1 - Tax…
Q: Brown Industries has a det percent. There is no corporate tax. e company's cost of equity capital ld…
A: The debt-equity ratio refers to the ratio which evaluates the company's position in terms of its…
Q: A firm has an ROE of 4%, a debt-to-equity ratio of 0.9, and a tax rate of 35% and pays an interest…
A: Variables in the question: ROE=4%Debt-to-equity=0.9Tax rate=35%Interest rate=7%
Q: at is a balance sheet? Why is it useful? What is the difference between a pro forma balance sheet…
A: The financial information is very important now days and it is very important to give the…
Q: Which one of the following statements is correct? Multiple Choice O O O O O If the total debt ratio…
A: Financial ratios serve as valuable tools for understanding a company's financial position,…
Q: A firm has an ROE of 4 percent, a debt/equity ratio of 0.4, a tax rate of 35 percent, and pays an…
A: D/E = 0.40Let's take Equity = ESo,Debt = 0.40EAsset = 1.4E Net Income = 0.04E Interest = Interest…
Q: need help
A: Step 1: Understand the formula for the given ratios: Return on Equity = Net Income/ Total EquityDebt…
Q: Suppose Microsoft has no debt and a WACC of 9.2%. The average debt-to-value ratio for the softw…
A: WACC is the weighted cost of equity and weighted cost of debt and is the cost of capital of the…
Q: Madison Industries Inc. has an annual plant capacity of 638,000 units, and current production is…
A: Annual production capacity = 638000 units Current production = 448000 unitsMonthly fixed costs =…
Q: Suppose Microsoft has no debt and a WACC of 8.7%. The average debt-to-value ratio for the software…
A: The question is based on the concept of Weighted Average Cost of Capital (WACC), which represents a…
Q: Caddie Manufacturing has a target debt-equity ratio of .75. Its cost of equity is percent, and its…
A: The cost of capital is the rate of return that a company gives on all its capital whether it is…
Q: If a company decides to increase its ratio of total debt / total assets from 30% to 50% as a means…
A: ROE that is return on equity is the amount of return earned on the equity of the entity. It is the…
Q: Company A has a ROA of 8% and a ROE of 12 % . Company B has a ROA of 7% and an ROE of 15%. What does…
A: We will find the ratio of equity/total assets, which measures the percentage equity allocation of…
Q: Want answer
A: Step 1: GivenDept ratio = 15 % = 0.15ROE = 13 % = 0.13ROA = ? Step 2: Formula usedDebt ratio = Total…
Q: You've collected the following information about Caccamisse, Incorporated: $ 280,000 $ 17,700 $…
A: Variables in the questionSales ($)280000Net income ($)17700Dividends ($)6500Total Debt ($)60000Total…
Q: A firm has an ROE of 4 percent, a debt/equity ratio of 0.4, a tax rate of 35 percent, and pays an…
A:
Q: A firm has an ROE of 2%, a debt/equity ratio of 0.6, a tax rate of 30%, and pays an interest rate of…
A: A financial term known as operating return on assets, or ROA, gauges how profitable and efficient an…
Q: Jeel's Inc has a debt-equity ratio of 0.57. The cost of equity is 15.7 percent, the pretax cost of…
A: Debt equity ratio defines the proportion of the debt-equity mix in the capital structure. Investors…
Q: m has a debt-to-equity ratio of 1. Its levered cost of equity (Rs) is 10.4 %, and its pretax cost of…
A: Unlevered cost of equity would can calculated from the WACC.
Q: 3. ABC Corp.’s equity multiplier is 1.25. What is its debt ratio? 4.Easy Corp.’s return on…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Must Tee Shirt Company pays income taxes and finances partially with debt. It recently calculated…
A: The weighted average cost of capital indicates the financial position of a company. It measures the…
Q: Bank ABC has a Return on Equity (ROE) equal to 22%, a total debt ratio (debt/total assets) equal to…
A: Here,Return on Equity (ROE) is 22%Total Debt Ratio is 0.9Asset Utilisation Ratio is 0.05
Q: Gates Appliances has a return-on-assets (investment) ratio of 20 percent. a. If the…
A: Return on equity(or ROE) = Return on assets×Equity multiplier Equity multiplier is calculated as…
Q: A firm has an ROE of 4%, a debt/equity ratio of 0.4, a tax rate of 35%, and pays an interest rate of…
A:
Q: Brannan Manufacturing has a target debt - equity ratio of 45. Its cost of equity is 11.4 percent,…
A: WACC is the weighted average cost of capital, where weight is based on the level of debt and equity…
Q: What does firm total asset turnover need to be if your total debt ratio is .2 and profit margin 9%…
A: The total asset turnover ratio is a financial indicator that assesses how well a firm uses all of…
Q: Benjamin Manufacturing has a target debt-equity ratio of .45. Its WACC is 11.2%, and its cost of…
A: The cost of equity signifies the expected rate of return a company needs to deliver on its equity…
Q: 4. Company ABC has an equity/debt ratio of 3,2. Its WACC is 9 percent, and its expected rate of…
A: a) Calculate the cost of debt (KD) by the weighted average cost of capital (WACC) by the formula.…
Q: Sunrise, Incorporated, is trying to determine its cost of debt. The firm has a debt issue…
A: The given problem can be solved using RATE function in excel.The formula to calculate the pretax…
Q: Using the FTE approach, find the value of the firm:
A: Calculation of FCF:
Q: The following data applies to a firm: Interest charges=P50,000.00; Sales = P300,000.00; Tax…
A: Here in this case we are required to calculate interest covered ratio. We first need to understand…
Q: QA) Tanten Company has 200% debt and 80% equity. The borrowing rate is 12%. (1) If you own 4% of…
A: (Note: Debt is 20% and equity is 80%) First we'll calculate the net income by deducting interest on…
Q: What is the WACC for the following company with: Debt rate: 7% Cost of Equity: 11% Percentage…
A: WACC WACC shows the after-tax cost of the capital raised from all sources by a company. It shows…
Q: Ladders, Inc. has a net profit margin of 5.6% on sales of $49.1 million and $1.5 million of interest…
A: ROE and ROA are two profitability ratios which shows ratio of net income with Equity value of the…
Q: Comment on the liquidity of the two companies. Which company has more risk of not satisfying its…
A: Operating Cycle is summation of Inventory Period and Account Receivable Period. That is, the period…
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: Given:Debt Ratio = 15% = 0.15ROE = 13% = 0.13To find ROA given debt ratio and ROE we will use the…
Q: O'Brien Inc. has the following data: TRF = 5.00 % ; RPM = 6.00% ; and b = 1.10. What is the firm's…
A: Cost of equity - The amount of return needed by a business for a project or investment, or by an…
Q: Solve this Problem
A: The problem requires the determination of net income. Net income pertains to the amount of…
Q: Need answer
A: Reference:Tamplin, T. (2023i, November 28). Debt Ratio | Definition, Components, Formula, Types,…
Q: Suppose Microsoft has no debt and a WACC of 9.2%. The average debt-to-value ratio for the software…
A: Cost of Equity: In finance, the cost of equity is the rate of return required by a firm for a…
Q: A firm has a debt-to-equity ratio of 1. Its levered cost of equity (Rs) is 10.4 %, and its pretax…
A: Cost of unlevered equity can be calculate by using this equation under MM approch1963 Levered cost…
Q: The following information is available regarding XYZ Co. sales = $250,000 net income = $35,000…
A: Here, Sales is $250,000Net Income is $35,000Dividends is $10,000Total Debt is $100,000Total Equity…
Q: a. If the company's cost of equity is 15 percent, what is its pretax cost of debt? (Do not round…
A: The weighted average cost of capital measures the typical cost a business pays to finance its…
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- 3. Company WACC is 20%. Debt interest rate is 4% and D/ E ratio is 1,6. What is the cost of equity? HOW YOU CALCULATE THIS WITH EXCEL AND USING EXCEL FORMULAS?6) Needham Pharmaceuticals has a profit margin of 2% and an equity multiplier of 2.0. Its sales are $110 million and it has total assets of $50 million. What is its return on equity (ROE)? Do not round intermediate calculations. Round your answer to two decimal places.On January 1, 2022, Charis Company adopted a plan to accumulate funds for a new building to be erected beginning January 1, 2026 at an estimated cost of P20,000,000. The entity intends to make four equal annual deposits in a fund beginning December 31, 2022 that will earn interest at 12% compounded annually. The future value of an ordinary annuity of 1 at 12% for four periods is 4.78, and the future value of an annuity of 1 in advance at 12% for four periods is 5.35. What is the annual deposit to the fund? A. 5,000,000 B. 4,184,100 C. 3,738,318 D. 3,149,606
- A firm has 4000m in balance sheet debt (book value is equal to market value in this case) and 1000m in capitalized leases. Market value of equity is 10000m. You can use book value of debt to approximate its market value. If you were to use this information in the calculation of WACC, what is Wd? O 40.00% O 28.57% O 33.33% O 50.00%What is the EPS in the following case? Debt : Equity ratio = 3:1 Total Capital employed = 20,00,000 Interest rate for debt = 8%, Tax rate = 40% Price per share = 100 EBIT = 4,00,000 a. 35.74 b. 33.6 c. 35.2 d. 31.85Subject - account Please help me. Thankyou.
- CoffeeCarts has a cost of equity of 15.1%, has an effective cost of debt of 3.8%, and is financed 69% with equity and 31% with debt. What is this firm's WACC? CoffeeCarts's WACC is __ % ? (Round to one decimal place.)Alpha Co. has a debt-equity ratio of 0.6, a pretax cost of debt of 7.5 percent, and an unlevered cost of equity of 12 percent. What is Alpha's cost of equity if you ignore taxes? Multiple choice question. 16.5% 9.3% 14.7% 12% Explain whyWinter's Toyland has a debt-equity ratio of 1.00. The cost of debt is 10 percent and the required return on assets is 18 percent. What is the cost of equity if you ignore taxes? Write your answer as a percent rounded to two digits, but don't include the % sign (.e. write 12.63, not 0,1263) Numeric Response
- Choose the correct letter of answer: The following data applies to a firm: Interest Charges P10 Million, Sales/CGS P80 Million, Tax Rate 50% and Net profit margin 10%. What is the firm's interest covered ration? a. 1.6b. 2.6c. 3.6d. 4.6e. 5.6M3Brannan Manufacturing has a target debt-equity ratio of .30. Its cost of equity is 12.5 percent, and its pretax cost of debt is 7.2 percent. If the tax rate is 25 percent, what is the company’s WACC? WACC: (by %)