RB Corp. has interest-bearing debt with a market value of $85.6 million. The company also has 2.1 million shares that sell for $42 per share. Compute the Debt-Equity Ratio based on market values (round to 3 decimal places).

RB Corp. has interest-bearing debt with a market value of $85.6 million. The company also has 2.1 million shares that sell for $42 per share. Compute the Debt-Equity Ratio based on market values (round to 3 decimal places).

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 49E

See similar textbooks

Related questions

Q: none

A: Key Concepts:1. **Price-Earnings (P/E) Ratio** - Measures how much investors are willing to pay per…

Q: hello teacher please solve questions

A: Step 1: Definition of Goods ManufacturedThe number of units a company must manufacture in a given…

Q: Net income?

A: Net Income is the total profit of a company after deducting all expenses, including the cost of…

Q: Calculate the segment return on assets of this financial accounting question

A: The return on assets for Segment X is calculated as follows: Return on assets = Operating income of…

Q: 4 POINTS

A: Explanation of Revenue on Account: This refers to income earned by providing goods or services to…

Q: Pinakin Inc. has sales of $680,000 and costs of $305,000. Interest expense is $25,000 and…

A: Concept of Sales RevenueSales Revenue is the total amount of money a company earns from selling…

Q: Want your help with problem

A: We have given, Net Income after taxes = $73,000Total Common Equity at the end of last year =…

Q: Problem related general Accounting

A: Concept of Owner's EquityOwner's equity represents the owner's financial interest in a business,…

Q: Answer? ? General Accounting

A: To calculate the Dividend Yield, we use the formula: Dividend Yield =(Annual Dividend per Share /…

Q: Sierra Adventure has a net income of 3 million this year

A: To determine Sierra Adventures' internal growth rate (IGR), we first calculate the Return on Equity…

Q: Subject: financial accounting

A: Explanation of Return on Assets (ROA): Return on Assets measures how efficiently a company is using…

Q: ???

A: Concept of Total EarningsTotal earnings refer to the total amount of money generated from business…

Q: Brookfield Corporation acquired Sunset Industries on January 1, 2015 for $5,500,000, and recorded…

A: Explanation of Goodwill:Goodwill is an intangible asset that arises when a company acquires another…

Q: Compute the labor efficiency variance of this general accounting question

A: Step 1: Define Labor Efficiency VarianceThe Labor Efficiency Variance (LEV) measures the efficiency…

Q: Correct Answer

A: Concept of Cash SalesCash Sales refer to revenue generated from sales transactions where payment is…

Q: final answer general accounting

A: Step 1: Definition of OverheadsOverheads refer to indirect costs that are not directly traceable to…

Q: Do fast answer of this accounting questions

A: Step 1: Definition of Present Value of Tax ShieldThe Present Value of the Tax Shield (PVTS)…

Q: Help

A: Given Data:Expected return (μ) = 16.20% = 0.1620Variance (σ2) = 0.6400 Step 1: Compute the…

Q: i dont know this question solution

A: Step 1: Definition of Comprehensive Income:A company's comprehensive income is the sum of its net…

Q: Answer this Accounting problem

A: Concept of Variable CostingVariable costing is a cost accounting method that includes only variable…

Q: help me to solve this questions

A: The Gross Profit Margin is a financial metric that shows the percentage of revenue that exceeds the…

Q: 1: Armand Giroux (single; 0 federal withholding allowances) earned weekly gross pay of $1,500. For…

A: ExplanationArmand Giroux's and Eric Belanger's calculations match exactly. Peter Quigley's local…

Q: Determine the equipment units of production

A: Explanation of Equivalent Units of Production (EUP):Equivalent units of production (EUP) represent…

Q: General Accounting 12

A: The Net Realizable Value (NRV) method is used to allocate joint costs based on the proportion of the…

Q: ???

A: We are given the following information:Baseline Sales: $6 millionBaseline Profit: $0.30…

Q: Question

A: To calculate the coefficient of variation (CV), we use the formula: CV =Standard Deviation /…

Q: Taxable income? Provide answer

A: Step 1: Definition of Taxable IncomeTaxable Income is the amount of earnings on which tax is…

Q: Classify the following items as assets, liabilities or owner's equity -account payable -loan from…

A: Here are definitions for the three key terms:AssetsAssets are resources owned or controlled by a…

Q: Tutor need your advice

A: The question requires the determination of the sales for the month. Monthly sales refer to the total…

Q: Can you please answer the financial accounting question?

A: Step 1: Define Net Realizable Value (NRV) of Accounts ReceivableNet Realizable Value (NRV) of…

Q: Sub. General accounting

A: Step 1:Profit margin (rate) can be calculated by dividing the net profit by the net sales. Step…

Q: final answer

A: Concept: Stock Dilution* When a company issues new shares, existing shareholders' ownership…

Q: Please give the answer general accounting

A: 1. Ending retained earningsFormula:Ending retained earnings = Retained beginning balance + Net…

Q: Opereting cash flow to be ?

A: To solve the problem, we can use the formula for the degree of operating leverage (DOL): Percentage…

Q: help me to solve this questions

A: Step 1:The straight-line method is the easiest method to calculate the depreciation expense. It is…

Q: Provide correct answer general Accounting

A: Step 1: Define Net Pay and Spendable IncomeNet Pay is the amount of money an employee receives after…

Q: given answer General accounting

A: Step 1: DefinitionAverage Collection Period (or Days' Sales in Accounts Receivable) measures the…

Q: What is the level of its accounts receivable for this financial accounting question?

A: Step 1: Define Accounts Receivable Using Days Sales Outstanding (DSO)Days Sales Outstanding (DSO)…

Q: Contribution margin

A: Explanation of Contribution Margin:Contribution margin represents the portion of sales revenue that…

Q: expert of general accounting answer me

A: Step 1: Definition of Applied OverheadManufacturing overhead is applied using a predetermined…

Q: need help this question

A: Step 1: Definition of Average Collection PeriodAccounts receivable represent the credit sales made…

Q: 4.3,./mm4,m mkcvcvm,cxmkmgl;flf,mgb.m,vbl,mlbgmgrlbnmk)

A: b. Optimal Product Mix Using Traditional Profit Contribution Method To determine the optimal product…

Q: Kindly help me with accounting questions

A: Step 1: Definition of Credit SalesCredit sales refer to sales made on account, where customers are…

Q: Provide answer

A: Explanation of Trial Balance: A trial balance is a bookkeeping worksheet that lists all the accounts…

Q: Calculate the opereting cash flow? Accounting

A: Step 1: Definition of Operating Cash Flow (OCF)Operating cash flow (OCF) represents the cash…

Q: Answer this Question

A: Concept of Net SalesNet Sales represents the actual revenue a company earns after deducting sales…

Q: general accounting final

A: Step 1: Definition of InventoryInvestors can study the inventory valuation method of a firm by…

Q: Correct Answer

A: Concept of Variable Cost per UnitThe variable cost per unit represents the cost associated with…

Q: What is the direct labor price variance for August

A: Step 1: Definition of Direct Labor Price VarianceThe Direct Labor Price Variance measures the…

Q: ABC is an all-equity firm that has 44,200 shares of stock outstanding at a market price of $14.70…

A: We are given that ABC is an all‐equity firm with:Number of shares outstanding: 44,200Share price:…

Question

Compute the debt equity ratio based on market values of this financial accounting question

RB Corp. has interest-bearing debt with a market value of $85.6
million. The company also has 2.1 million shares that sell for $42 per
share.
Compute the Debt-Equity Ratio based on market values (round to 3
decimal places).

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 by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Andyco, Inc., has the following balance sheet and an equity market-to-book ratio of 1.8. Assuming the market value of debt equals its book value, what weights should it use for its WACC calculation? Assets $1,090 Liabilities & Equity Debt $460 Equity $630 The equity weight for the WACC calculation is __ % ? (Round to two decimal places.)
Andyco, Inc., has the following balance sheet and an equity market-to-book ratio of 1.4. Assuming the market value of debt equals its book value, what weights should it use for its WACC calculation? Liabilities & Equity Assets $1,030 Debt Equity $500 $530 The debt weight for the WACC calculation is %. (Round to two decimal places.)
Andyco, Inc., has the following balance sheet and an equity market-to-book ratio of 1.6. Assuming the market value of debt equals its book value, what weights should it use for its WACC calculation? Assets Liabilities & Equity $1,040 Debt $400 Equity $640 The debt weight for the WACC calculation is 28.09 %. (Round to two decimal places.) The equity weight for the WACC calculation is 71.91 %. (Round to two decimal places.)
Sunset Industries has a debt-to-equity ratio of 1.25, a ROA (Return on Assets) of 7.5%, and total equity of $800,000. What are the company's equity multiplier, debt ratio, and ROE? (Round equity multiplier to 2 decimal places, debt ratio to 3 decimal places, and ROE to 1 decimal place.)
What is techstars market debt equity ratio?
Geisner Inc. has total assets of $1,000,000 and total liabilities of $600,000. The industry average debt-to-equity ratio is 1.20. Calculate Geisner's debt-to-equity ratio and indicate whether the company's default risk is higher or lower than the average of other companies in the industry.
What is this firm debt equity ratio? General accounting
Kodi Company has a debt-equity ratio of 1.33. Return on assets is 7.58 percent, and total equity is $665,000. a. What is the equity multiplier? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the 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. c. What is the net income? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. a. Equity multiplier b. Return on equity c. Net income times %
What is this firm debt equity ratio?
synoec company has a debt - equity ratio of.85. return on assets is 10.4 percent, and total equity is $785, 000. what is the equity multipler? what is the return on equity? what is the net income?
Pickler Company has a debt-equity ratio of 1.39. Return on assets is 7.64 percent, and total equity is $695,000. a. What is the equity multiplier? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the return on equity? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the net Income?
What is this firm's debt equity ratio? For this accounting question