User Account

All Pages

Debt-to-equity ratio of the firm

Assignment Help Finance Basics
Reference no: EM133110107

Your company has a cost of debt of 3.45% and a return on levered equity of 9%. The unlevered value of equity is 23,500,000 EUR and the company's expected perpetual EBITDA is 1,762,500. Assume all assets are depreciated, there is no taxation and no bankruptcy costs. What is the debt-to-equity ratio of the firm?

The answer is 0.37. Can you help me show the calculation?

Reference no: EM133110107

Questions Cloud

Find the ebit breakeven point : Please help me solve using Excel: Find the EBIT breakeven point using the information below:
What annual rate of simple interest was charged : Amber was charged interest of $92 for a loan amount of $2,200 that he borrowed for 130 days. What annual rate of simple interest was charged
Weighted average cost of capital for projects and firms : What are the advantages and disadvantages of using the Weighted Average Cost of Capital (WACC) for projects and firms?
Compute the expected payoffs of the borrower : Consider a borrow a that can choose between two projects, S and R, each of which will pay off a random amount one period hence. Project S will yield $280 with p
Debt-to-equity ratio of the firm : Assume all assets are depreciated, there is no taxation and no bankruptcy costs. What is the debt-to-equity ratio of the firm?
List each account title under the element of the accounting : The following account titles were drawn from the general ledger. List each account title under the element of the accounting equation to which it belongs
Develop customised and integrated applications : Develop customised and integrated applications to meet organisational needs and Evaluate the design and the completed, optimised solution making suitable
Publicly funded health care programs overrule cultural : Do publicly funded health care programs overrule cultural differences for the sake of providing a standard level of care?
Compute the net advantage or disadvantage of the plan : Fixed expenses will stay the same. For profitability analysis, ABC uses an 8% effective interest rate. Compute the net advantage or disadvantage of the plan

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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