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Schism, Inc., has a total debt ratio of 0.70, total debt of $265,000, and net income of $24,850. What is the company's return on equity?
SDI, Inc., has net working capital of $1,350, current liabilities of $4,290, and inventory of $1,820. What is the current ratio? What is the quick ratio?
Rolston Recording has total assets of $10,500,000 and a total asset turnover of 2.10 times. If the return on assets is 13 percent, what is its profit margin?
Quisco Systems has 6.5 billion shares outstanding and a share price of $18.00. Quisco is considering developing a new networking product in-house at a cost of $500 million. Alternatively, Quisco can
Irrational, Inc., is obligated to pay its creditors $7,500 during the year. What is the value of the shareholders' equity if assets equal $8,700?
Financial ratio analysis is conducted by managers, equity investors, long-term creditors, and short-term creditors. What is the primary emphasis of each of these groups in evaluating ratios?
Explain why the quick ratio or acid-test ratio is a better measure of a firm's liquidity than the current ratio.
Find online the annual 10-K report for Peet's Coffee and Tea (PEET) for 2008. Answer the following questions from the income statement: What were Peet's revenues for 2008? By what percentage did rev
If Roten Inc has an equity multiplier of 1.35, total asset turnover of 2.15 and a profit margin of 5.8%, what is the ROE?
The 2010 income statement showed an interest expense of $118,000. What was the firm's cash flow to creditors during 2010?
Anderson inc has 5,000,0000 debt at 10% per year, sale of 10,000,000, a tax rate of 40% and a net profit margin of 6%, what is anderson's times interest earned ratio?
Ranney, Inc has sales of $14,900, costs of $5,800, depreciation expense of $1,300 and interest expense of $780. If the tax rate is 40%, what is the operating cash flow?
Norton Company has a debt-to-equity ratio of 1.65, ROA of 11.3 percent, and total equity of $1,322,796. What are the company's equity multiplier, debt ratio, and ROE?
Sustainable Growth If the Parodies Corp. has a 16 percent ROE and a 20 percent payout ratio, what is its sustainable growth rate?
A stock you are evaluating just paid an annual dividend of $2.50. If the required rate of return on the stock is 12 percent, what is its fair present value?
The marginal income tax rate is 40%. The market value of debt is $50 million and the market value of equity is $50 million. What is the cost of equity?
Assume that a corporation has $100,000 of taxable income from operations plus $5,000 of interest income and $10,000 of dividend income. What is the company's tax liability?
if $1 million face amount of commercial paper (270 day paper) is sold for $982,500, what is the simple rate of interest being paid? what is the compound annual rate?
Why is the marginal cost of capital the relevant concept for evaluating investment projects, rather than a firm's actual, historic cost of capital?
The market has had an average annual return of 14.50% during the past 5 years. The firm's tax rate is 40%. What is the best estimate of the firm's WACC?
Find the present value of $7,000 to be received one year from now assuming a 3 percent annual discount interest rate. Also calculate the present value if the $7,000 is received after two years.
Discuss the differences between cash flow and accounting income and why it is important to use cash flow in making capital budgeting decisions.
Why do some investors prefer high-dividend-paying stocks, while other investors prefer stocks that pay low or nonexistent dividends?
Analyze the following scenario: Duncombe Village Golf Course is considering the purchase of new equipment that will cost $1,200,000 if purchased today and will generate the following cash disburse
Why does CD's bond rating and cost of debt depend on the amount of money borrowed?