Financed entirely with debt and common equity

Assignment Help Financial Management

Reference no: EM13915445

Kansas Orthotics had $24,000,000 in sales last year. The company’s net income was $400,000. Its total assets turnover was 6.0. The company’s ROE was 15 percent. The company is financed entirely with debt and common equity. What is the company’s debt ratio?

Reference no: EM13915445

Questions Cloud

Earnings before interest : What are earnings before interest and taxes-Earnings before interest and taxes

Synergies required for the firm to earn its cost of capital : Assuming the stand-alone valuation in Table 9.10 is accurate, what is the implied present value of Microsoft's anticipated synergies required for the firm to earn its cost of capital?

What was the selling price of the bonds : Zolf Corporation issued $60,000 of 6 percent, 10-year bonds on January 1, 2013, for a price that reflected a 7 percent market rate of interest. Interest is payable annually on December 31.

Future value calculations : When might we use present value calculations? When might we use future value calculations? Which is more likely to be used in accounting? Why?

Financed entirely with debt and common equity : Kansas Orthotics had $24,000,000 in sales last year. The company’s net income was $400,000. Its total assets turnover was 6.0. The company’s ROE was 15 percent. The company is financed entirely with debt and common equity. What is the company’s debt ..

Suspended loss under the passive activity loss rules : Pamela earns a yearly salary of $150,000. During year 1 she invested $80,000 for a 20% interest in a passive activity. In addition, her share of the activity’s nonrecourse debt is $20,000. Operations of the activity in year 1 resulted in a loss of $5..

Prepare journal entries for all events associated : On May 1, 2013, Sturgis Corporation declared a $100,000 cash dividend to be paid on May 31 to shareholders of record on May 15.

Describe the major differences among industrial firms : Describe the major differences among industrial firms, resellers, and government units in the United States.

Tvm calculations : What is the time value of money (TVM)? Why is this concept important in accounting? Under what circumstances might we use TVM calculations?

User Account

All Pages