Reference no: EM131291858
Your company's summarized financial information for the beginning and projected end of the current year is as follows: Beginning of the Year End of the Year (projected) Assets $90,000 $100,000 Liabilities 30,000 30,000 Equity 60,000 70,000 Net Income 15,000 Your company is considering issuing 30 bonds at the end of the year (December 31st). The bonds will pay 6% interest semi-annually for 15 years and the market rate for similar bonds is 5%. Calculate the following ratios with and without the bond issue.
Review question: how much did the company pay in dividends this year (if any)? The company did not issue or repurchase any stock during the year.
WITH BOND ISSUE / IF BONDS ARE ISSUED
ROA= ? / ?
ROE= ? / ?
DEBT RATIO= ? / ?
D/E= ? / ?
DIVIDENDS= ? / ?
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Reporting this investment using the equity method
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Summary using the periodic inventory system
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Determine net purchases and cost of goods purchased
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Record the necessary adjusting entry
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Calculate the ratios with and without the bond issue
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Compute the overhead rate at the two shipyards
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The pretax net income is
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Assuming ace uses a perpetual inventory system
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