subject
Business, 02.07.2019 23:30 famouzgal

Last year hamdi corp. had sales of $500,000, operating costs of $450,000, and year-end assets (which is equal to its total invested capital) of $370,000. the debt-to-total-capital ratio was 17%, the interest rate on the debt was 7.5%, and the firm's tax rate was 25%. the new cfo wants to see how the roe would have been affected if the firm had used a 50% debt-to-total-capital ratio. assume that sales, operating costs, total assets, total invested capital, and the tax rate would not be affected, but the interest rate would rise to 8.0%. by how much would the roe change in response to the change in the capital structure? do not round your intermediate calculations. a. 2.46% b. 2.64% c. 3.21% d. 2.08% e. 2.01%

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 13:10
Thomas kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. thomas's fastest-moving inventory item has a demand of 6,000 units per year. the cost of each unit is $100, and the inventory carrying cost is $10 per unit per year. the average ordering cost is $30 per order. it takes about 5 days for an order to arrive, and the demand for 1 week is 120 units. (this is a corporate operation, and the are 250 working days per year.)a) what is the eoq? b) what is the average inventory if the eoq is used? c) what is the optimal number of orders per year? d) what is the optimal number of days in between any two orders? e) what is the annual cost of ordering and holding inventory? f) what is the total annual inventory cost, including cost of the 6,000 units?
Answers: 3
question
Business, 22.06.2019 15:40
The cost of direct labor used in production is recorded as a? a. credit to work-in-process inventory account. b. credit to wages payable. c. credit to manufacturing overhead account. d. credit to wages expense.
Answers: 2
question
Business, 22.06.2019 17:30
Google started as one of many internet search engines, amazon started as an online book seller, and ebay began as a site where people could sell used personal items in auctions. these firms have grown to be so large and dominant that they are facing antitrust scrutiny from competition regulators in the us and elsewhere. did these online giants grow by fairly beating competition, or did they use unfair advantages? are there any clouds on the horizon for these firms -- could they face diseconomies of scale or diseconomies of scope as they continue to grow? if so, what factors may limit their continued growth?
Answers: 1
question
Business, 22.06.2019 20:00
Which of the following is a competitive benefit experienced by the first mover firm in an industry? a. the first mover will be able to achieve a less steep learning curve. b. the first mover will be able to reduce the switching costs. c. the first mover will not have to patent its products or technology. d. the first mover will be able to reduce costs through economies of scale.
Answers: 3
You know the right answer?
Last year hamdi corp. had sales of $500,000, operating costs of $450,000, and year-end assets (which...
Questions
question
History, 03.11.2019 08:31
Questions on the website: 13722359