subject
Business, 07.10.2019 22:30 joseroblesrivera123

Buchholz corporation follows a moderate current asset investment policy, but it is now considering a change, perhaps to a restricted or maybe to a relaxed policy. the firm's annual sales are $400,000; its fixed assets are $100,000; its target capital structure calls for 50% debt and 50% equity; its ebit is $35,000; the interest rate on its debt is 10%; and its tax rate is 40%. with a restricted policy, current assets will be 15% of sales, while under a relaxed policy they will be 25% of sales. what is the difference in the projected roes between the restricted and relaxed policies?

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 21:30
What is the eventual effect on real gdp if the government increases its purchases of goods and services by $80,000? assume the marginal propensity to consume (mpc) is 0.75. $ what is the eventual effect on real gdp if the government, instead of changing its spending, increases transfers by $80,000? assume the mpc has not changed. $ an increase in government transfers or taxes, as opposed to an increase in government purchases of goods and services, will result in an identical eventual effect on real gdp. a smaller eventual effect on real gdp. a larger eventual effect on real gdp. no change to real gdp.
Answers: 3
question
Business, 21.06.2019 21:30
In a macroeconomic context, what are implicit liabilities? money owed to people possessing government issued bonds. the amount of money that firms collectively owe to shareholders. money that the government has promised to pay in the future. payments that the federal government undertakes only during periods of recession. which of the choices is a significant implicit liability in the united states? military spending education spending national science foundation spending social security
Answers: 2
question
Business, 22.06.2019 01:30
How will firms solve the problem of an economic surplus a. decrease prices to the market equilibrium price b. decrease prices so they are below the market equilibrium price c.increase prices
Answers: 3
question
Business, 22.06.2019 03:40
Electronics assembly inc. is a contract manufacturer that assembles consumer electronics for a number of companies. currently, the operations manager is assessing the capacity requirements as input into a bid for a job to assemble cell phones for a major global company. the company would assemble three models of cell phones in the same assembly cell. setup time between the phones is negligible. electronics assembly inc. operates two 8-hour shifts for 275 days per year. cell phone demand forecast (phones/year) processing time (minutes/phone) mars 47,000 19.8 saturn 35,000 20.7 neptune 7,500 16.2 a. calculate total capacity required by line. b. determine the total operating time available. c. calculate the total number of assembly cells. (round up your answer to the next whole number.)
Answers: 2
You know the right answer?
Buchholz corporation follows a moderate current asset investment policy, but it is now considering a...
Questions
question
Health, 02.12.2020 04:20
question
Mathematics, 02.12.2020 04:20
question
Mathematics, 02.12.2020 04:20
question
History, 02.12.2020 04:20
question
Mathematics, 02.12.2020 04:20
question
Mathematics, 02.12.2020 04:20
question
Mathematics, 02.12.2020 04:20
Questions on the website: 13722367