The Financial Leverage is equal to:
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The financial statements of TVS Motors report the following information (all values are in millions). Revenue: Rs. 112246, PBDIT: Rs. 8020, PBIT: Rs. 6100 and PBT: Rs. 5650. Shareholders Fund: Rs. 19368, Non-current liabilities: Rs. 9240, and Current liabilities: Rs. 18850. The Financial Leverage is equal to:
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- Lever Age pays an 9% rate of interest on $9.70 million of outstanding debt with face value $9.7 million. The firm's EBIT was $2.3 million. a. What is its times interest earned? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Times interest earned 0.03 X b. If depreciation is $170,000, what is its cash coverage ratio? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Cash coverage ratio 0.03 XThe book value of SA Ornirat’s equity is 106,000 euros, with a ACB of 3. The company’s cash position is 84,000 euros and its financial and banking debt is 410,000 euros. What is its market value leverage based on net financial debt?Given the information below. Find the Weighted Average Cost of Capital Market Value of Equity = $22,000,000; Debt = $15,000,000; Cash or Cash Equivalents = $15,000,000 iD = 0.10 or 10% iMKT = 0.17 or 17% tCorp = 0.30 or 30% bK = 1.5 IRF = 0.02 = 2%
- White Waters, Inc., has sales of $34 million, total assets of $48 million, and total debt of $11 million with a 6% average interest rate. If the profit margin is 13 percent, the ROA is ______ %. Round it to two decimal places.Using the DuPont method, evaluate the effects of the following relationships for the Butters Corporation. A.Butters Corporation has a profit margin of 5.5 percent and its return on assets (investment) is 8.75 percent. What is its assets turnover? Round your answer to 2 decimal places. ______ times B.If the Butters Corporation has a debt-to-total-assets ratio of 65.00 percent, what would the firm’s return on equity be? Note: Input your answer as a percent rounded to 2 decimal places. C.What would happen to return on equity if the debt-to-total-assets ratio decreased to 60.00 percent? Input your answer as a percent rounded to 2 decimal places.Assume average net operating assets equal $1,000,000. The average book value of common equity equals $750,000. Assume sales for the period total $3,000,000. Assume opening income totals $150,000 and net borrowing costs (cost of debt) is 3%. Solve for the net financing expenses
- Use this information for Mason Corporation to answer the question that follow. Mason Corporation had $1,058,000 in invested assets, sales of $1,229,000, income from operations amounting to $202,000, and a desired minimum return of 12%. Round the percentage to one decimal place. The profit margin for Mason Corporation is Oa. 19.1% Ob. 16.4% Oc. 86.1% IC. Od. 12.0%Total assets of Alpha Company are 3,00,000. The company's total assets turnover ratio is 3, its fixed operating cost is 1,50,000 and its variable operating cost ratio is 50%. The income-tax rate is 50%. It also has long term debts of 1,20,000 on which interest @ 10% is payable. Operating, Financial & Combined Leverages of the company are - Oa. 1.05; 1.42; 1.05625 respectively O b. 1.05; 1.42; 1.05625 respectively O c. 1.05; 1.42; 1.05625 respectively Od1,5; 1.042; 1.563 respectivelyCompany X has debt and equity as source of funds..Company X has market value of debt as $ 150000 and a book value of debt as $ 80000. The company has book value of equity as $ 100000 and market value of equity as $ 125000. The cost of debt is 8.25% and cost of equity is 9.57%. The tax rate is 38%. What is WACC?
- The Lawrence Company has a ratio of long term debt to long term debt plus equity of .39 and a current ratio of 1.7. Current liabilities are 950, sales are 6370, profit margin is 9.8 percent, and ROE is 20 percent. What is the amount of the firms net fixed assets?Samuel Corp. provides the following information: EBIT = $386.50 Tax (TC ) = 21% Debt = $700 RU = 10% Question: What is the value of Samuel’s equity?Following is the financial statements data for XYZ Corporation: XYZ Corp. Total Assets $23,565 Interest-Bearing Debt $12,131 Average borrowing rate for debt Common Equity: 11.7% Market Value $26,887 Marginal Income Tax Rate 35% Market Beta 1.91 Based on the information above, what is the weight on equity capital that you can use to calculate the firm's weighted-average cost of capital (WACC) (Write your answer in percent, omit the "%" sign, and round your answer to two decimal places. For example, if your answer is 0.538, type in 53.80):
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