Determining the target debt to equity ratio

Assignment Help Finance Basics
Reference no: EM13827109

Problem:

What three factors are important to consider in determining a target debt to equity ratio?

A. Taxes, asset types, and pecking order and financial slack
B. Asset types, uncertainty of operating income, and pecking order and financial slack
C. Taxes, financial slack and pecking order, and uncertainty of operating income
D. Taxes, asset types, and uncertainty of operating income
E. None of the above.

Summary of question:

This question basically belongs to Finance as well as it explains about the three important factors being considered for determining the target debt to equity ratio. The answer has been chosen from given multiple choice.

Reference no: EM13827109

Questions Cloud

Calculation of stock price per share with market value : A firm has a market value equal to its book value. Currently, the firm has excess cash of $500 and other assets of $9,500. Equity is worth $10,000. The firm has 250 shares of stock outstanding and net income of $1,400.
What is the velocity of the carriage : If the carriage has a velocity of 5 ft/sec to the right at t = 0, determine the velocity v1 of the' carriage when t = 1sec. By inspection, what is the velocity v2 of the carriage when t = 2 sec
Stock repurchase that can occur under certain circumstances : If you ignore taxes and transaction costs, a stock repurchase will?
Calculation of profit or loss on a call option investment : You wrote ten Call Option contracts on JIG stock with a strike price of $40 and an option price of $.40.
Determining the target debt to equity ratio : What three factors are important to consider in determining a target debt to equity ratio?
Computations of the value of a firm : Thompson & Thomson is an all equity firm that has 500,000 shares of stock outstanding. The company is in the process of borrowing $8 million at 9% interest to repurchase 200,000 shares of the outstanding stock.
Which security officer is correct about food service : Security officer A says that soiled-linen chutes aren't a problem area for healthcare center security. Security officer B says that the food service area is a prime location for theft. Which security officer is correct
Question based on positive balance of payments : This problem is related to financial basics and it is explain "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments." Briefly comment on this statement?
Discuss about marketing strategy of a business organization : Discuss about marketing strategy of a business organization

Reviews

Write a Review

Finance Basics Questions & Answers

  It may surprise you that there are cash flows associated

it may surprise you that there are cash flows associated with holding a job.nbsp using the examples provided in chapter

  Adequate operating profits on the firm assets

Is management generating adequate operating profits on the firm's assets

  What will be the principal amount of the loan at the end of

the sundarams are buying a new 3500-square-feet house in muncie indiana and will borrow 263233 from bank one at a rate

  What is the future value of this cash flow stream

Now consider the uneven cash flow stream stemming from the lease agreement given in the case.

  The pre-tax cost of debt rb for the joint partnership is 9

triad corporation has established a joint venture with tobacco road construction inc. to build a toll road in north

  What is the discount rate applicable to division a

Management has told the manager of division A that projects in his division will be assigned a discount rate that is 2 percent less than the firm's weighted average cost of capital. What is the discount rate applicable to division A?

  What will the pe ratio be after the repurchase

Rochester, Inc. has 7,500 shares of stock outstanding at a market price of $42 each and earnings per share of $1.90. The firm has decided to repurchase $63,000 worth of stock. What will the PE ratio be after the repurchase, all else held constant?

  Comparing cash generation techniques

Determine how important has cash generation been for your current company or a prior employer? How is cash generation different from the concept of P&L in accounting?

  Francis incs stock has a required rate of return of 1025

francis inc.s stock has a required rate of return of 10.25 and it sells for 57.50 per share. the dividend is expected

  Explain why the present value of a cash flow stream and

explain why the present value of a cash flow stream and the asset associated there with fluctuate in value with the

  The chief financial officer mr smith told him it was

in march 2010 hertz pain relievers bought a massage machine that provided a return of 8 percent. it was financed by

  Beta industries has net income of 3800000 and it has 870000

beta industries has net income of 3800000 and it has 870000 shares of common stock outstanding. the companys stock

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