Business, 10.10.2019 00:30 Spoilmom7231
Which of the following statements is correct? a. klein cosmetics has a profit margin of 5.0%, a total assets turnover ratio of 1.5 times, no debt and therefore an equity multiplier of 1.0, and an roe of 7.5%. the cfo recommends that the firm borrow funds using long-term debt, use the funds to buy back stock, and raise the equity multiplier to 2.0. the size of the firm (assets) would not change. she thinks that operations would not be affected, but interest on the new debt would lower the profit margin to 4.5%. this would probably not be a good move, as it would decrease the roe from 7.5% to 6.5%. b. suppose a firm wants to maintain a specific tie ratio. it knows the amount of its debt, the interest rate on that debt, the applicable tax rate, and its operating costs. with this information, the firm can calculate the amount of sales required to achieve its target tie ratio. c. since the roa measures the firm's effective utilization of assets without considering how these assets are financed, two firms with the same ebit must have the same roa.
Answers: 3
Business, 22.06.2019 10:30
The card shoppe needs to maintain 21 percent of its sales in net working capital. currently, the store is considering a four-year project that will increase sales from its current level of $349,000 to $408,000 the first year and to $414,000 a year for the following three years of the project. what amount should be included in the project analysis for net working capital in year 4 of the project?
Answers: 3
Business, 22.06.2019 17:00
You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. the portfolio's beta is 1.12. you plan to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b = 1.50. what will the portfolio's new beta be? do not round your intermediate calculations.
Answers: 2
Business, 22.06.2019 19:00
Which of the following would cause a shift to the right of the supply curve for gasoline? i. a large increase in the price of public transportation. ii. a large decrease in the price of automobiles. iii. a large reduction in the costs of producing gasoline
Answers: 1
Which of the following statements is correct? a. klein cosmetics has a profit margin of 5.0%, a tot...
French, 06.10.2019 04:50
History, 06.10.2019 04:50
Mathematics, 06.10.2019 04:50
Physics, 06.10.2019 04:50
Biology, 06.10.2019 04:50
Mathematics, 06.10.2019 04:50
Mathematics, 06.10.2019 04:50