Find beckham current ratio

Assignment Help Finance Basics
Reference no: EM133111016

ABC Corporation is planning its debt maturity mix. Management has chosen a debt-equity mix consisting of $50,000 of liabilities and $75,000 of owners' equity. The yield curve is currently upward sloping: the interest rate on short-term debt is 7% and the interest rate on long-term debt is 11%. ABC has $60,000 of current assets, anticipates EBIT of $20,000 and has a 30% tax rate.

What will Beckham's current ratio be if it makes $15,000 of the liabilities short-term and $35,000 long-term?

Reference no: EM133111016

Questions Cloud

What is the price of the bond : ABC Company is about to issue a bond with annual coupon payments, a coupon rate of 5%, and par value of $1,000. The yield-to-maturity for this bond is 4%.
Contingency planning process : What that article considers a shortcoming in CitiBank's planning. What part of the contingency planning process came up short (IR, BP, or CP)?
What is the current price of lod stock : The stock of Line of Duty (LoD), of which you own 645 shares, will pay a £3-per-share dividend one year from today. Two years from now, LoD will close its doors
Operating cycle and the cash conversion cycle : What is the difference between the operating cycle and the cash conversion cycle?
Find beckham current ratio : What will Beckham's current ratio be if it makes $15,000 of the liabilities short-term and $35,000 long-term?
Role of technology in business solutions : What is the Purpose of Technology? What is the role of technology in business solutions?
What is the annual interest tax shield : A firm has 21,000 bonds outstanding with a par value of $1,000 each and a coupon rate of 7%. If interest is paid annually, and the firm has a tax rate of 35%, w
What is husky cost of debt : At the time of writing, Husky Energy Inc. had a bond outstanding with approximately 9 years to maturity (18 semiannual coupons) and a coupon rate of 3.60%. The
Report outline and source analysis assessment : Develop your ability to outline the types of information, sections and layout included in professional reports and Implementing instant messaging

Reviews

Write a Review

Finance Basics Questions & Answers

  Review the case of liability management at general motors

Liability Management at General Motors (Harvard Business School Case 293123-PDF-ENG). The case studies issues related to managing the liability structure.

  What factors would influence mullet decision

Mullett Technologies is considering whether or not to refund a $75 million, 12% coupon, 30-year bond issue that was sold over 5 years ago. It is amortizing $5 million of flotation costs on the 12% bonds over the issue's 30-year life. Mullet's investm..

  Analyze the quarterly dividend growth rate

Get the current price and 5-year dividend history for Eli Lily & Corporation To gather this information, enter the ticker symbol (LLY) in the Get Quotes box at the top of the page and then click the GO button.

  Compute the standard deviation and coefficient of variation

Nile Riverboat co. Nile Riverboat company a major boat building company highly sensitive to the economy, expects profits next year to be $2,000,000 if the economy is strong, $1,2000,000 if the economy is steady and minus $400,000 if the economy is we..

  What was fva’s cash coverage ratio for the year

Calculating the Cash Coverage Ratio FVA Inc.'s net income for the most recent year was $17,590. The tax rate was 34 percent. The firm paid $4,150 in total interest expense and deducted $5,820 in depreciation expense. What was FVA's cash coverage r..

  Find the direct or indirect cost fall for specific job

Sparky Ltd is a business that employs a number of electricians. The business undertakes a range of work for its customers, from replacing fuses to installing complete wiring systems in new houses.

  What is the after-tax cost of preferred stock for fjord

Fjord Luxury Liners has preferred shares outstanding that pay an annual dividend equal to $13 per year. If the current price of Fjord preferred shares.

  What stock price will james get a margin call

James earns no interest on the funds in his margin account. At what stock price will James get a margin call?

  Why is this not an arbitrage opportunity

You think you see an opportunity to earn an arbitrage profit by engaging in both transactions at the same time. Why is this not an arbitrage opportunity and how could you make it one, assuming you could get two people to engage in these gambles?

  Large-capitalization stocks of companies

What are the advantages and disadvantages of choosing the TD Canadian Blue Chip Equity Fund compared to the TD Canadian Index Fund?

  Determine conversion the number of shares

It has been said that convertible securities offer the best of two worlds to the issuing firm: while debt is outstanding, the firm pays a lower interest rate.

  Discuss why this is a correct prediction or recommendation

Discuss why this is a correct prediction or recommendation. Is it possible to have too much liquidity? Why or why not? If possible, provide specific examples to explain your position.

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