High target debt-to-equity ratios

Assignment Help Other Subject

Reference no: EM13335976

A) Airline companies tend to have very volatile earnings, and as a result they generally have high target debt-to-equity ratios.

B) Generally, debt-to-total-assets ratios do not vary much among different industries, although they do vary among firms within a given industry.

C) Wide variations in capital structures exist both between industries and among individual firms within given industries. These differences are caused by differing business risks and also managerial attitudes.

D) Since most stocks sell at or very close to their book values, book value capital structures are typically adequate for use in estimating firms' costs of capital.

E) Electric utilities generally have very high common equity ratios because their revenues are more volatile than those of firms in most other industries.

Reference no: EM13335976

Questions Cloud

What is the initial value of the angular velocity : A child is pushing a merry-go-round. The angle through which the merry-go-round has turned varies with time according to ?(t)=?t+?t3, What is the initial value of the angular velocity

End-of-project recovery of any working capital required : The end-of-project recovery of any working capital required to operate the project. All costs associated with the project that have been incurred prior to the time the analysis is being conducted.

What is the magnitude of the magnetic flux through the ring : a 0.065 t magnetic field passes through a circular ring of radius of 4 cm at an angle of 25 dregrees with the normal. what is the magnitude of the magnetic flux through the ring

Compute how fast will the electron be moving : An electron starts from rest 32.5 cm from a fixed point charge with Q=-0.125 µC. How fast will the electron be moving when it is very far away

High target debt-to-equity ratios : Airline companies tend to have very volatile earnings, and as a result they generally have high target debt-to-equity ratios. Generally, debt-to-total-assets ratios do not vary much among different industries, although they do vary among firms within..

What is the value of a right-rights-on or right-off : A stock is currently quoted at 53 on NASDAQ. A Rights Offering has been declared with an exercise price of 48, and 4.92 rights are needed to buy a new share of stock.

What is the magnitude of the angular velocity of the rod : An electromagnetic doorbell has been constructed by wrapping 66 turns of wire around a long, thin rod, What is the magnitude of the angular velocity of the rod

Minimize the weighted average cost of capital : Minimize the weighted average cost of capital (WACC). Maximize the earnings per share (EPS). Minimize the cost of equity (rs). Minimize the cost of debt (rd). Obtain the highest possible bond rating.

Estimate the strength in the van allen belts : Use the strength of the magnetic field at the Earth's surface (4 x 10-5 T) to estimate the strength in the Van Allen belts

User Account

All Pages