Assume conservative corporation is 100 equity financed

Assignment Help Finance Basics
Reference no: EM13479391

Assume Conservative Corporation is 100% equity financed. Calculate the return on equity given the following information:

1. Earnings before taxes = $2,000

2. Sales = $5,000

3. Dividend payout ratio = 60%

4. Total asset turnover = 2.0

5. Applicable tax rate = 50%

Reference no: EM13479391

Questions Cloud

The current interest rate premiums for relatively safe : you see that the current 30-day t-bill rate is 4.5. you are told by a friend who works for an investment firm that the
Account work the anz bank share code anzax expects to pay a : the anz bank share code anz.ax expects to pay a dividend of 0.91 ltbrgttoday and dividends are expected to grow at 6
Account work the anz bank share code anzax expects to pay a : the anz bank share code anz.ax expects to pay a dividend of 0.91 ltbrgttoday and dividends are expected to grow at 6
If the nominal rate of interest on 1-year bonds is 5 : assume that the real risk-free rate is 2 percent and that the maturity risk premium is zero. if the nominal rate of
Assume conservative corporation is 100 equity financed : assume conservative corporation is 100 equity financed. calculate the return on equity given the following
Variable costs are 55 percent of sales depreciation on the : herrera music company is considering the sale of a new sound board used in recording studios. the new board would sell
Using 500-1000 words discuss methods to evaluate the : using 500-1000 words discuss methods to evaluate the effectiveness of your proposed solution and variables to be
Given the following information calculate the market price : given the following information calculate the market price per share of wam inc.earnings after interest and taxes
If boyd corporation has sales of 2 million per year all : 1. if boyd corporation has sales of 2 million per year all credit and days sales outstanding of 35 days what is its

Reviews

Write a Review

Finance Basics Questions & Answers

  Make a fundamental financial analysis of the company

Prepare a fundamental financial analysis of the company IBM from its published financial statements of the annual report year 2013, submit an 8- to 10-page paper (excluding appendices, cover page, abstract, and references).

  What is the capital structure weight of the common stock

The bonds mature in 14 years, have a face value of $825, and sell at 103 of par. What is the capital structure weight of the common stock?

  What is the futures price for a futures style option

Suppose that the futures price of a commodity is 500 cents, the strike price of a futures option is 550 cents, the risk-free rate of interest is 3%, the volatility of the futures price is 20%, and the time to maturity of the option is 9 months.

  What coupon rate should be set on the bonds

What coupon rate should be set on the bonds-with-warrants so that the package would sell for $1,000?

  What is the probability that person actually has hepatitis

From a large population of which .05% of the people have hepatitis, a person is selected at random and given the test. If the test is positive, what is the probability that the person actually has hepatitis? (Round your answer to five decimal plac..

  Determine to the nearest percent the irr projects

Determine to the nearest percent the IRR of the following projects: a. An initial outlay of $10,000 resulting in a free cash flow of $2.000 at the end of year 1, $5,000 at the end of year 2, and $8,000 at the end of year 3.

  At what discount rate are indifferent between two choices

You have a choice between a lottery lump sum payout of $5,975,191.24 today or a series of twenty annual annuity payments of $500,000 each (first cash flow one year from today). At what discount rate are you indifferent between the two choices.

  The becker family owns 2300000 shares of coase corp how

class corp has 10000000 outstanding shares. there are 11 directors on the firms board. the becker family owns 2300000

  What would the value of the fulton bonds

What would the value of the Fulton bonds at an 8% required interest rate of return if the interest were paid and compounded semiannually?

  Calculate the total amount paid back

Legan Corporation borrowed $15,280 at 16 1/2% for 12 years. Determine how much simple interest did the company pay? Calculate the total amount paid back?

  Calculation of the risk-free rate

Calculation of the risk-free rate or the rate of return on a risk-free portfolio and suppose that securities A and B are perfectly negatively correlated

  Treasury bond interest rates

Assume you own the 8% October 2008 treasury bond and it is expected that the market interest rate will increase from 8% to 9% in the next three months.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd