The statement of financial position as of December 31, 2020, for Taube Corporation follows:(all amounts in thousands)AssetsLiabilities and Shareholders' EquityCurrent assets$62,000Current liabilities$25,000Non-current assets100,000Long-term liabilities45,000Shareholders' equity92,000Total liabilities andTotal assets$162,000shareholders' equity$162,000The company's management is evaluating a couple of options to finance the acquisition of new equipment with a cost of $33 million.Taube has a cash balance of $20 million as of December 31, 2020. Determine the debt to equity ratio and net debt as apercentage of total capitalization ratio. Assume that only the company's long-term liabilities are interest bearing. (Roundanswers to 2 decimal places, e.g. 1.25.):1Debt to Equity:1Net Debt as a Percentage of Total CapitalizationeTextbook and Mediablo cemi-annually. Taube is considering borrowing $33 million by taking out a six-year bank loan that carries 10% interest payable semi-annually.Determine the company's debt to equity and debt as a percentage of total capitalization ratios if it decides to borrow the moneyand purchase the equipment. (Round answers to 2 decimal places, e.g. 1.25.)Debt to Equity:1:1Net Debt as a Percentage of Total CapitalizationeTextbook and MediaAttempts: 0 of 2 usedSubmit AnswerSave for LaterAPRétv

Given options, Cash Balance of $20 million Borrowing $33 million by taking 6-year loan @10% interest…

Taube is considering borrowing $33 million by taking out a six-year bank loan that carries 10% interest payable semi-annually. Determine the company's debt to equity and debt as a percentage of total capitalization ratios if it decides to borrow the money and purchase the equipment. (Round answers to 2 decimal places, e.g. 1.25.) Debt to Equity :1 :1 Net Debt as a Percentage of Total Capitalization eTextbook and Media

Taube is considering borrowing $33 million by taking out a six-year bank loan that carries 10% interest payable semi-annually. Determine the company's debt to equity and debt as a percentage of total capitalization ratios if it decides to borrow the money and purchase the equipment. (Round answers to 2 decimal places, e.g. 1.25.) Debt to Equity :1 :1 Net Debt as a Percentage of Total Capitalization eTextbook and Media

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Presented below is the balance sheet of Pina Corporation for the current year, 2020. PINA CORPORATIONBALANCE SHEETDECEMBER 31, 2020 Current assets $  486,360 Current liabilities $  381,360 Investments 641,360 Long-term liabilities 1,001,360 Property, plant, and equipment 1,721,360 Stockholders’ equity 1,771,360 Intangible assets 305,000 $3,154,080 $3,154,080 The following information is presented. 1. The current assets section includes cash $151,360, accounts receivable $171,360 less $11,360 for allowance for doubtful accounts, inventories $181,360, and unearned rent revenue $6,360. Inventory is stated on the lower-of-FIFO-cost-or-net realizable value. 2. The investments section includes the cash surrender value of a life insurance contract $41,360; investments in common stock, short-term $81,360 and long-term $271,360; and bond sinking fund $247,280. The cost and fair value of investments in common stock are the same.…
Presented below is the balance sheet of Sargent Corporation for the current year, 2020. Sargent CorporationBalance SheetDecember 31, 2020 Current assets $ 485,000 Current liabilities $ 380,000 Investments 640,000 Long-term liabilities 1,000,000 Property, plant, and equipment 1,720,000 Stockholders' equity 1,770,000 Intangible assets 305,000 $3,150,000 $3,150,000 The following information is presented. 1.    The current assets section includes cash $150,000, accounts receivable $170,000 less $10,000 for allowance for doubtful accounts, inventories $180,000, and unearned rent revenue $5,000. Inventory is stated on the lower-of-FIFO-cost-or-net realizable value. 2.    The investments section includes the cash surrender value of a life insurance contract $40,000; investments in common stock, short-term $80,000 and long-term $270,000; and bond sinking fund $250,000. The cost and fair value of investments in common stock are the same. 3.…
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The following information pertains to MNA Corporation for the year ended December 31, 2020: Accumulated profits, January 1, 2020 P1,500,000 Net income for 2020 300,000 Cash dividends declared December 1, 2020 and distributable on January 10, 2021 490,000 Share dividends declared November 25, 2011 and distributed on December 15, 2020 370,000 Required: Compute the balance of accumulated profits as of December 31, 2020.
Some selected financial statement items belonging to MNO Company are given in the table below. According to this information, which of the following is Return on Assets (ROA) in 2021? Inventory 12,500Total Assets in 2021 110,000Current Liabilities 40,000Total Assets in 2020 90,000Net Profit 12,000Shareholders' Equity 65,000 Select one:a. 0.12b. 0.10c. 0.18d. 0.13
ome selected financial statement items belonging to MNO Company are given in the table below. According to this information, which of the following is Return on Assets (ROA) in 2021? Inventory 12,500 Total Assets in 2021 110,000 Current Liabilities 40,000 Total Assets in 2020 90,000 Net Profit 12,000 Shareholders' Equity 65,000 Select one: a. 0.18 b. 0.10 c. 0.13 d. 0.12
Presented below are the financial statements of Swifty Corporation. Swifty CorporationComparative Balance SheetsDecember 31 Assets 2022 2021 Cash $ 28,000 $ 16,000 Accounts receivable 16,000 11,200 Inventory 22,400 16,000 Property, plant, and equipment 48,000 62,400 Accumulated depreciation (25,600 ) (19,200 ) Total $88,800 $86,400 Liabilities and Stockholders’ Equity Accounts payable $ 15,200 $ 12,000 Income taxes payable 5,600 6,400 Bonds payable 13,600 26,400 Common stock 14,400 11,200 Retained earnings 40,000 30,400 Total $88,800 $86,400 Swifty CorporationIncome StatementFor the Year Ended December 31, 2022 Sales revenue $193,600 Cost of goods sold 140,000 Gross profit 53,600 Selling…
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