Given answer accounting questions Tech Solutions Corp has the following financial information:Total market value of company's stock: $900 million Total marketvalue of company's debt: $300 millionWhat is the weighted average of the company's debt?A. 15.25%B. 25.00%C. 33.33%D. 75.00%E. 85.50%

Solution:The weighted average of the company's debt is the proportion of the total capital…

Answered: Tech Solutions Corp has the following…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter3: Analysis Of Financial Statements

Section: Chapter Questions

Problem 1STP

See similar textbooks

Similar questions

Klynveld Companys balance sheet shows total liabilities of 94,000,000, total stockholders equity of 75,000,000, and total assets of 169,000,000. Required: Note: Round answers to two decimal places. 1. Calculate the debt ratio. 2. Calculate the debt-to-equity ratio.
Food shoppe galore had the following information solve this question
ABC Corporation has the following balance sheet. How much net operating working capital does the firm have? Cash Short-term investments Accounts receivable Inventory Current assets Net fixed assets Total assets O a. $285.00 O b. $15.00 O c. $68.00 O d. $82.00 Oe. $232.00 $10 Accounts payable Accruals 84 Notes payable 56 Current liabilities $150 Long-term debt 100 Common equity Retained earnings Total liab. & equity $250 $22 60 53 $135 30 30 55 $250
please show your answer with workings and explanation.
The following data pertains to Xena Corp. Xena Corp. Total Assets $23,610 Interest-Bearing Debt (market value) $11,070 Average borrowing rate for debt 10.2% Common Equity: Book Value $6,150 Market Value $25,830 Marginal Income Tax Rate 37% Market Beta 1.73 Using the information from the table, calculate Xena's cost of debt capital
Jordan Manufacturing reports the following capital structure: Current liabilities P100,000 ; Long-term debt 400,000 ; Deferred income taxes 10,000 ; Preferred stock 80,000 ; Common stock 100,000 ; Premium on common stock 180,000 ; Retained earnings 170,000. What is the debt ratio? A. 0.48 B. 0.49 C. 0.93 D. 0.96
The Jacks corporation reported the following:i. Net income $ 840,000.00ii. Accounts payable and accruals $1,270,650.00iii. Interest expense $ 305,000.00iv. Return on asset 16%v. Tax rate 30%As the company’s business analyst, you know that Jacks finances only with debt and equity. 45%of its total invested capital is debt. Calculate and interpret the basic earnings power ratio, thereturn on equity, and the return on invested capital. Please show work
Current assets Long-term assets Total Locust Farming Balance Sheet ($ in millions) $ 42,524 46,832 Current liabilities Long-term debt Other liabilities Equity $ 89,356 Total $ 29,755 27,752 14,317 17,532 $ 89,356 Locust has 657 million shares outstanding with a market price of $83 a share. a. Calculate the company's market value added. b. Calculate the market-to-book ratio. c. How much value has the company created for its shareholders as a percent of shareholders' equity, that is, as a percent of the net capital contributed by shareholders?
What is the company's Debt to equity ratio on these general accounting question?
What is the company's debt to equity ratio on these general accounting question?
Xitin Inc. has the following balance sheet. How much total operating capital does the firm have? Cash $ 63.00 Accounts payable $ 515.00 Short-term investments 117.00 Accruals 281.00 Accounts receivable 246.00 Notes payable 122.00 Inventory 392.00 Current liabilities $918.00 Current assets $818.00 Long-term debt 246.00 Gross fixed assets $647.00 Common stock 56.00 Accumulated depreciation 77.00 Retained earnings Net fixed assets Total assets $475 O $470 $552 $665 O $670 168.00 $570.00 Total common equity $224.00 $1,388.00 Total liab. & equity $1,388.00
If a company’s debt-to-value ratio is 40% calculate its debt-to-equity ratio. If the dollar value of the company’s debt is $200 million calculate its market value of equity and its market value of assets. Show all calculations.

SEE MORE QUESTIONS

Recommended textbooks for you

Corporate Fin Focused Approach

Finance

ISBN:

9781285660516

Author:

EHRHARDT

Publisher:

Cengage

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

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

Publisher:

Cengage Learning

Corporate Fin Focused Approach

Finance

ISBN:

9781285660516

Author:

EHRHARDT

Publisher:

Cengage

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

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

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

Tech Solutions Corp has the following financial information: Total market value of company's stock: $900 million Total market value of company's debt: $300 million What is the weighted average of the company's debt? A. 15.25% B. 25.00% C. 33.33% D. 75.00% E. 85.50%