subject
Business, 26.11.2019 06:31 sailesd57

Consider the following case of green rabbit transportation inc.: suppose green rabbit transportation inc. is considering a project that will require $350,000 in assets. the project is expected to produce earnings before interest and taxes (ebit) of $50,000. common equity outstanding will be 30,000 shares the company incurs a tax rate of 40%. if the project is financed using 100% equity capital, then green rabbit transportation inc.'s return on equity (roe) on the project will be . in addition, green rabbit's earnings per share (eps) will be . alternatively, green rabbit transportation inc.'s cfo is also considering financing the project with 50% debt and 50% equity capital. the interest rate on the company's debt will be 11%. because the company will finance only 50% of the project with equity, it will have only 15,000 shares outstanding. green rabbit transportation inc.'s roe and the company's eps will be if management decides to finance the project with 50% debt and 50% equity. typically, the use of financial leverage will make the probability distribution of roic

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 18:30
Shareholders of tesla recently expressed concerns that elon musk should give up some of his power on tesla's board by appointing two independent directors. which of the following is not a reason why elon musk is perceived to have significant power over tesla's board? 1. he is the founder of the firm and a successful entrepreneur, thus board members may be hesitant to challenge him.2. as the ceo and chairman of the firm he can easily determine what the board should discuss and how it should vote on strategic issues.3. all board members, except for kimbal, have been appointed to the board during elon's tenure.4. many of the firm's directors are outsider investment managers whose interests would not be aligned with those of firms' shareholders.
Answers: 3
question
Business, 21.06.2019 18:30
Which stroke of the four-stroke cycle is shown in the above figure? a. power b. compression c. exhaust d. intake
Answers: 2
question
Business, 21.06.2019 20:10
In three to four sentences, explain the effect of a price ceiling on the quantity of a good and who this intervention intends to assist
Answers: 3
question
Business, 22.06.2019 06:30
Selected data for stick’s design are given as of december 31, year 1 and year 2 (rounded to the nearest hundredth). year 2 year 1 net credit sales $25,000 $30,000 cost of goods sold 16,000 18,000 net income 2,000 2,800 cash 5,000 900 accounts receivable 3,000 2,000 inventory 2,000 3,600 current liabilities 6,000 5,000 compute the following: 1. current ratio for year 2 2. acid-test ratio for year 2 3. accounts receivable turnover for year 2 4. average collection period for year 2 5. inventory turnover for year 2
Answers: 2
You know the right answer?
Consider the following case of green rabbit transportation inc.: suppose green rabbit transportatio...
Questions
question
Mathematics, 09.02.2021 20:00
question
Mathematics, 09.02.2021 20:00
question
Mathematics, 09.02.2021 20:00
question
Mathematics, 09.02.2021 20:00
question
Mathematics, 09.02.2021 20:00
question
Mathematics, 09.02.2021 20:00
Questions on the website: 13722360