Suppose PayPal (PYPL) has no debt and an equity cost of capital of 9.7 %. The average debt-to- value ratio for the credit services industry is 15.4 %. What would its cost of equity be if it took on the average amount of debt for its industry at the cost of debt of 6%?
Q: Contribution margin
A: Explanation of Contribution Margin:The contribution margin represents the amount of revenue…
Q: Gross profit percentage?
A: Step 1: Define Total RevenueIn economics and finance, the total revenue (TR) is the sum of earnings…
Q: How much net operating income will be reported for the period?
A: Net Operating Income (NOI):NOI is the income generated from core business operations, excluding…
Q: Annual loan payment? General accounting question
A: Explanation: In the given case, we are required to calculate the amount of annual payment for the…
Q: Solution
A: To calculate the Enterprise Value (EV) of Crimson Tech Inc., we will use the following…
Q: Subject:- General Account
A: Step 1: Definition of Accounting EquationThe accounting equation serves as a basis for the balance…
Q: Mia Steel started the year with total assets of $325,000 and total liabilities of $174,000. During…
A: Step 1:First, calculate the beginning stockholders' equity: Beginning stockholders' equity = Total…
Q: None
A: The cash cycle measures how long a company takes to convert its inventory investments and accounts…
Q: general accounting
A: Step 1: Definition of Cash Collected from CustomersCash collected from customers represents the…
Q: The story of FTX is another "open and shut" fraud case, this time taking place in the digital world.…
A: The FTX fraud was dismantled through a series of investigations led by federal agencies. The…
Q: Problem related general Accounting
A: Debt-Equity Ratio: This ratio measures the proportion of debt relative to equity. It is calculated…
Q: If a business has revenue of $677,000, cost of goods sold of $214,000, operating expenses of…
A: Concept of Gross ProfitGross profit is the amount a company earns after deducting the cost of goods…
Q: Please give me true answer this financial accounting question
A: Step 1: Define Expected ReturnThe expected return is a weighted average of all possible returns,…
Q: Analyzing one company's make or buy and special order proposals OneCo is a retail organization in…
A: Step 1: Cost Analysis of OneCo's Current ProductionOneCo's total cost per unit:Direct…
Q: Financial Accounting
A: Earnings per Share (EPS) = $2.10 Stock Price = EPS × P/E Ratio1. If the P/E ratio is 21:Stock Price…
Q: can you please solve this?? general account
A: Step 1: Definition of Gain/Loss on Sale of PropertyThe gain or loss on a property sale is calculated…
Q: VR Corporation makes a product whose direct labor standard are 1.3 hours per unit and $14 per hour.…
A: Concept of Standard Direct Labor CostStandard Direct Labor Cost represents the estimated or…
Q: What are the variable expenses per unit on these financial accounting question?
A: Step 1: Define Variable Expenses per UnitVariable expenses per unit are the costs that change with…
Q: RRR Stores has total debt of $6,666 and a debt-equity ratio of 0.59. What is the value of the total…
A: We are tasked to compute for the total assets using the debt to equity ratio as basis for…
Q: Give this question general accounting
A: Dividend Growth Model:The formula for the Dividend Growth Model is:Cost of Equity (Re) = (D1 / P0) +…
Q: Sub. General accounting
A: The labor rate variance measures the difference between the actual labor cost and the standard labor…
Q: Please given solution general accounting
A: Step 1: Definition of Predetermined Overhead RateThe predetermined overhead rate is used to allocate…
Q: What was the receivables turnover ratio of this general accounting question?
A: Step 1: Define Receivables Turnover RatioThe Receivables Turnover Ratio measures how efficiently a…
Q: PLEASE HELPPP
A: Step 1:(a) First, calculate the present value of note: Present value of note = Future value * PV…
Q: None
A: Step 1: Define Job-Order Costing SystemThe job-order costing system is used to calculate the total…
Q: Financial Accounting
A: Step 1: Define Price-to-Earnings (P/E) RatioThe Price-to-Earnings (P/E) Ratio measures the valuation…
Q: The gross profit for Dodge company is
A: Calculation of Cost of Goods SoldCost of Goods Sold = Net Purchases + Beginning Inventory - Ending…
Q: How much total overhead was applied during the year?
A: Explanation of Overhead Costs: Overhead costs are indirect expenses that cannot be directly traced…
Q: Solve this financial accounting problem
A: Return on Total Assets (ROA) is calculated using the formula: ROA=Average Total AssetsNet…
Q: We note the following adjusted trial balance totals: Cash $ 21,000 Accounts Receivable $ 20,000…
A: Given:Sales = $80,000Sales return = $6,000Net sales = 80,000 - 6,000 = 74,000Cost of…
Q: Hendrix Corporation had annual sales of $75 million, which occurred evenly throughout the 365 days…
A: Explanation of Average Collection Period:Average Collection Period (ACP) measures the average number…
Q: Tina's groos profit percentage is
A: Concept of Net PurchasesNet Purchases refer to the total cost of goods a business acquires for…
Q: If you give me wrong answer this financial accounting question I will give you unhelpful rate
A: Step 1: Define Total Comprehensive IncomeTotal Comprehensive Income represents a company's overall…
Q: i want to this question answer General accounting
A: Step 1: Calculate Retained EarningsStep 2: Calculate DividendsStep 3: Calculate Cash Flow to…
Q: Fleck's standard quantities for 1 unit of the product include 2 pounds of materials and 1.5 labor…
A: Step 1: Calculation of standard material costMaterial required per unit = 2 poundsStandard rate per…
Q: Hello tutor provide answer this financial accounting question
A: Step 1: Define Gain or Loss on Asset DisposalWhen a company sells an asset, it records either a gain…
Q: General Accounting
A: Step 1: Definition of Journal Entry for Revenue RecognitionA journal entry records a business…
Q: choose best answer general accounting
A: Step 1: Definition of Capital GainA capital gain occurs when an asset is sold for a price higher…
Q: Compute the labour quantity variance
A: Labor Quantity Variance is the difference between the actual hours worked and the standard hours…
Q: hi teacher please solve questions
A: Step 1: Information givenAccounts receivable turnover = 9.5Net sales = 100,000 (not needed in…
Q: Financial Accounting
A: Net Income = 400,000Average Equity = 550,000 ROE = (Net Income / Average Equity) × 100ROE = (400,000…
Q: General account
A: Step 1: Compute Annual Depreciation ExpenseFormula: Annual Depreciation=Estimated Lifetime…
Q: provide this questions answer asap FOR THIS GENERAL ACCOUNT
A: Step 1: Definition of FIFOFIFO (First-In, First-Out) is an inventory valuation method where the…
Q: Answer
A: Explanation of Depreciation:Depreciation is the process of allocating the cost of a tangible asset…
Q: What is the net income for the year?
A: To calculate the net income for the year, use the following formula: Net Income = Revenues -…
Q: Hello tutor please help me this questions
A: Step 1: Definition of Overhead CostOverhead cost refers to indirect expenses incurred in the…
Q: Compute applied overhead for February
A: Explanation of Predetermined Overhead Rate: The predetermined overhead rate is a cost allocation…
Q: Expert of general accounting answer
A: Step 1: Determine the estimated direct labor hours engaged in performing the job by dividing the…
Q: correct answer please
A: To calculate the total cost of the job when it is completed in October, we need to consider the…
Q: Hello tutor solve this question is accounting
A: Image.Explanation.The problem involves determining the fraction of a firm a venture capital (VC)…
None
Step by step
Solved in 2 steps
- Hi expart Provide solution for this accounting questionThe Tree House has a pretax cost of debt of 6.1 percent and a return on assets of 10.4 percent. The debt–equity ratio is .39. Ignore taxes. What is the cost of equity?A firm has a return on assets of 7.8 percent and a cost of equity of 11.9 percent. What is the pretax cost of debt if the debt–equity ratio is .72? Ignore taxes.
- A firm had a debt ratio of 1.20. The pretax cost of debt is 8% and the reqiured return on asset is 13%. What is the cost of equity if you Ignore taxes? A) 18.24% B) 20.14% C)17.67% D) 19.57% E) 19%Company A's simple EPS is $1 and diluted EPS is $.50. Company B's simple EPS is $1.5 but his diluted EPS is $.25. What would this tell you about the company? Next, suppose Company A's debt to equity ratio is 2 and Company's B's debt to equity ratio is .5. What would this tell you about the company? Besides profitability, what would the measures about tell you about how the company raises money?Bank ABC has a Return on Equity (ROE) equal to 24%, an equity/debt ratio equal to 0.05 and an asset utilisation ratio equal to 0.07. From this we know that the profit margin of bank ABC is?
- Queen, Inc., has a total debt ratio of 0.04. What is its equity multiplier?A firm had a debt ratio of 0.85. The pretax cost of debt is 8% and the reqiured return on asset is 15.5%. What is the cost of equity if we factorin the firms tax rate of 24%? A) 19.53 B) 18.92 C) 21.57 D) 20.35 E) 20.96Gates Appliances has a return-on-assets (investment) ratio of 20 percent. a. If the debt-to-total-assets ratio is 25 percent, what is the return on equity? (Input your answer as a percent rounded to 2 decima) places.) b. If the firm had no debt, what would the return-on-equity ratio be? (Input your answer as a percent rounded to 2 decimal places.)
- The Tree House has a pretax cost of debt of 6.2 percent and a return on assets of 10.6 percent. The debt–equity ratio is .40. Ignore taxes. What is the cost of equity? Multiple Choice 12.98% 8.84% 12.76% 13.48% 12.36%Suppose a company has a days sales outstanding (DSO) that is considerably higher than itsindustry average. If the company could reduceits accounts receivable to the point where itsDSO was equal to the industry average withoutaffecting its sales or its operating costs, howwould this affect (a) its free cash flow, (b) itsreturn on common equity, (c) its debt ratio,(d) its times-interest-earned ratio, (e) its EBITDAcoverage ratio, (f) its price/earnings ratio, and(g) its market/book ratio?Queen, Inc., has a total debt ratio of .22. a. What is its debt-equity ratio? b. What is its equity multiplier?