The project requires $850,000 in assets and will be 100% equity financed. If EBIT is $178,000 and the tax rate is 28%, what is ROE?
Q: What is the roe??
A: Given Data:Net Income (NI) = $215,000Total Assets (A) = $1,750,000Total Liabilities (L) = $650,0001.…
Q: Thompson Industries manufactures a product with the following standard costs: • Direct materials:…
A: Step 1: Definition of Direct Materials Quantity VarianceThe Direct Materials Quantity Variance…
Q: What is the gross profit of this financial accounting question?
A: Step 1: Define Gross ProfitGross Profit is the difference between sales revenue and the cost of…
Q: Velocity s percentage change calculation at the end of the current year is. Accounting
A: Step 1: Definition of Percentage ChangePercentage change is a method used to measure the relative…
Q: Solve now fast
A: Question as per my understanding (as the font is very blurry) - Brightwood seating sells reclining…
Q: Manny, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In…
A: Manny is a cash-method taxpayer, meaning he reports income when he receives it. If he bills his…
Q: General accounting
A: Step 1: Define Cash Paid for RentCash paid for rent represents the actual amount of cash a company…
Q: A convertible bond has a face value of $900 and a conversion price of $45 per share. The stock is…
A: 1. Conversion Ratio:Formula: Face Value / Conversion PriceCalculation: $900 / $45 = 20 shares 2.…
Q: Quick answer of this accounting questions
A: Step 1: Definition of Gross Profit MethodThe gross profit method is used to estimate the ending…
Q: I need correct answer of this general accounting question
A: Step 1: Define Corporation Stock BasisS Corporation stock basis represents a shareholder's…
Q: What are the beginning and ending amounts of equity on these accounting question?
A: Step 1: Define EquityEquity refers to the ownership interest in a company, calculated as the…
Q: I want to correct answer general accounting question
A: Step 1: Definition of Total Fixed CostTotal fixed cost refers to expenses that remain constant in…
Q: Lakeshore Retailers estimates bad debts as 2% of net sales but is switching to the aging method,…
A: Step 1: Definition of Bad Debt ExpenseBad debt expense is the estimated amount of accounts…
Q: Need help with this question solution general accounting
A: Step 1: Identify Given CostsThe given costs for different support activities are:Machine setup =…
Q: Fresh Bites Grocery has an inventory turnover ratio of 5.8, annual sales of $2.1 million, and a cost…
A: Step 1: Definition of Inventory Turnover and Average InventoryThe inventory turnover ratio measures…
Q: General accounting question
A: Step 1: Definition of After-Tax Cash Flow from Operations After-tax cash flow from operations is the…
Q: Subject: general accounting question
A: Step 1: Define Gain or Loss on Asset DisposalThe gain or loss on asset disposal is determined by…
Q: Financial accounting
A: Step 1: Identify the months with the highest and lowest costs and machine hours.From the given data,…
Q: What is the contribution margin per unit?? Accounting
A: Step 1: Definition of Contribution Margin per UnitThe contribution margin per unit represents the…
Q: Lexus Corporation has an investment
A: Lexus Corporation is evaluating an investment opportunity with the following financial details:Sales…
Q: Quick answer of this accounting questions
A: Step 1: Definition of Break-even Point The break-even point is the level of sales at which total…
Q: Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In…
A: sabel is a cash-method taxpayer who operates on a calendar-year basis. This means she can deduct…
Q: Please answer the following requirements on these accounting question
A: Step 1: Definition of Product Cost and Period CostProduct Cost: These are costs directly related to…
Q: Don't use ai given answer accounting questions
A: Step 1: Definition of Gross Profit MarginGross Profit Margin is a profitability ratio that measures…
Q: Please give me answer general accounting question
A: Step 1: Definition of Written Down Value (WDV) Depreciation MethodThe Written Down Value (WDV)…
Q: What is the interest payable at maturity on these financial accounting question?
A: Step 1: Define Interest Payable at MaturityInterest payable at maturity refers to the total interest…
Q: Velocity Industries acquired a machine for $310,000, with a salvage value of $25,000 and a useful…
A: Step 1: Definition of the Units of Activity Depreciation MethodThe Units of Activity Depreciation…
Q: I want to correct answer general accounting question
A: Step 1: Definition of Product Cost Product costs are the costs that are incurred to produce goods.…
Q: can you help me with General accounting question
A: Step 1: Define Maturity ValueMaturity value refers to the total amount that must be paid at the end…
Q: general accounting
A: Step 1: Definition of Asset Turnover RatioThe asset turnover ratio measures a company's efficiency…
Q: What is the product cost per yogurt Cup under absorption costing? Accounting
A: Step 1: Definition of Absorption CostingAbsorption costing is a method of product costing that…
Q: provide answer General accounting question
A: Step 1: Define Capitalized Lease LiabilityThe capitalized lease liability represents the present…
Q: Not Ai Solution
A: Concept of Cost of Goods Sold (COGS): Cost of Goods Sold (COGS) represents the direct expenses…
Q: managerial accounting
A: Step 1: Definition of Gross Profit RatioThe Gross Profit Ratio (GP Ratio) is a financial metric that…
Q: Please solve this question general accounting
A: Step 1: Define Taxable Social Security BenefitsTaxable Social Security benefits refer to the portion…
Q: Need your help with Question
A:
Q: I need true answer of this general accounting question
A: Step 1: Define Discounted Payback PeriodThe discounted payback period is the time required to…
Q: Fairview Medical Group purchases land for $165,000 cash. The clinic assumes $2,200 in property taxes…
A: Step 1: Definition of Land Cost RecordingThe cost of land includes all expenditures necessary to…
Q: Juno Manufacturing produces lamps that require 2.8 standard hours per unit at an hourly rate of…
A: Explanation of Direct Labor Rate Variance:Direct Labor Rate Variance measures the difference between…
Q: Using these data write everglow bakeries accounting equation of this accounting question
A: Step 1: Definition of Accounting EquationThe Accounting Equation is the fundamental principle of…
Q: What is the largest possible total contribution margin?
A: In order to ascertain the maximum feasible total contribution margin, it is necessary for us to…
Q: Can you help me with accounting questions
A: Step 1: Definition of Activity-Based Costing (ABC)Activity-Based Costing (ABC) assigns overhead…
Q: how much interest will horizon pay?
A: Given Data:Lease term = 4 yearsAnnual payment = $12,000 (paid at the beginning of each year)Fair…
Q: What was the amount of swift corporation
A: Explanation of Allowance for Doubtful Accounts:The Allowance for Doubtful Accounts is a contra-asset…
Q: Given the following costs and activities for Alpha Manufacturing, use the high-low method to…
A: Step 1: Definition of High-Low MethodThe high-low method is a cost estimation technique used to…
Q: I want to this question answer General accounting question
A: Step 1: Define Direct Materials Price VarianceThe Direct Materials Price Variance measures the…
Q: I need help with this solution and accounting
A: Step 1: Definition of Predetermined Overhead RateThe predetermined overhead rate is a rate used to…
Q: Can you help me with general accounting question
A: Step 1: Definition of Weighted Average MethodThe weighted average method in process costing…
Q: expert of general accounting answer
A: To determine the amount at which the loss will be reported on the income statement, we need to…
Q: When privately-held Toys "R" Us filed for bankruptcy in fall 2017, it disclosed that it had $5…
A: Private equity buyers chose to offer bonds (debt) instead of stock in the 2005 Toys "R" Us…
???
Step by step
Solved in 2 steps with 2 images
- I want to answer this questionNeed helpThe capital structure weights of Kala Ghoda is .55 and the tax rate is 39 percent. The cash flows of Kala Ghoda will be $1.55 million per year for 7 years and the cost of debt is 5.46 percent. What is the NPV if it's equity costs 11.17 percent and the project's cost is $7.5 million?
- We face two projects. One is to be financed with equity only. Its IRR is 12% and the cost of equity is 14%. The other project will be financed only with debt whose after tax cost is 6.5%. The IRR is 8% of the second project The COC is 10%. Which project should we choose and why?Wizard Co. is considering a project that will require $500,000 in assets. The project will be financed with 100% equity. The company faces a tax rate of 30%. What will be the ROE (return on equity) for this project if it produces an EBIT (earnings before interest and taxes) of $145,000? 20.3% 17.3% 14.2% 16.2% Determine what the project’s ROE will be if its EBIT is –$60,000. When calculating the tax effects, assume that Wizard Co. as a whole will have a large, positive income this year. -9.2% -8.4% -8.8% -7.6% Wizard Co. is also considering financing the project with 50% equity and 50% debt. The interest rate on the company’s debt will be 13%. What will be the project’s ROE if it produces an EBIT of $145,000? 25.2% 36.2% 29.9% 31.5% What will be the project’s ROE if it produces an EBIT of –$60,000 and it finances 50% of the project with equity and 50% with debt? When calculating the…AAA Inc. is evaluating a project that will require $500,000 in assets. The project is financed with equity only and is expected to generate earnings before interest and taxes of $90,000. The firm has a tax rate of 16%. What is the ROE (return on equit for this project? a. 16.00% b. 18.15% O c. 10.75% O d. 15.12%
- BadRock Corp is evaluating a project with revenues will be $3.5 million and cash expenses will be $1.5 million while depreciation expense will be $400 000 per year, then what is the expected free cash flow per year from taking the project if the company's tax rate is 30 per cent?Universal Exports Inc. is a small company and is considering a project that will require $650,000 in assets. The project will be financed with 100% equity. The company faces a tax rate of 25%. What will be the ROE (return on equity) for this project if it produces an EBIT (earnings before interest and taxes) of $155,000? 10.73% 17.88% 18.77% 12.52% Determine what the project’s ROE will be if its EBIT is –$50,000. When calculating the tax effects, assume that Universal Exports Inc. as a whole will have a large, positive income this year. -4.64% -6.67% -5.22% -5.8% Universal Exports Inc. is also considering financing the project with 50% equity and 50% debt. The interest rate on the company’s debt will be 12%. What will be the project’s ROE if it produces an EBIT of $155,000? 28.11% 18.74% 26.77% 21.42% What will be the project’s ROE if it produces an EBIT of –$50,000 and it…????
- Jensen Shipping is considering a project that has an initial cost of $218,000. The project will produce aftertax cash flows of $49,000 a year forever. The firm's WACC is 15.8 percent and its tax rate is 34 percent. Equity has a flotation cost of 14.0 percent while the flotation cost for debt is 2.0 percent. What is the net present value of this project, including the flotation costs, if the firm's debt-equity ratio is .5? (Rounded) Multiple Choice $62,501 $53,088 $47,088 $67,904I need help with this problem and accountingAbc