Net working capital and total long-term capital

Assignment Help Financial Management
Reference no: EM131991471

Consider this simplified balance sheet for Geomorph Trading: Current assets $ 100 $ 60 Current liabilities Long-term assets 500 280 Long-term debt 70 Other liabilities 190 Equity $ 600 $ 600 a. Calculate the ratio of debt to equity. (Round your answer to 2 decimal places.) Debt to equity ratio b-1. What are Geomorph’s net working capital and total long-term capital? Net working capital $ 40 Total long-term capital $ 470 b-2. Calculate the ratio of debt to total long-term capital. (Round your answer to 2 decimal places.) Debt to total long-term capital

Reference no: EM131991471

Questions Cloud

What debt to income ratio do you use to qualify home loan : what debt to Income ratio do you use to qualify your home loan? Calculate both front end and back end ratio for you and your spouse.
Production possibilities frontier : Why is this the case and how does it relate to the marginal product of labor (MPL) in each sector and the production possibilities frontier (PPF)?
What is the yardstick method : What is the yardstick method? a. How does it work in general?
Money and prices in the long run and open economies : This week we are studying Money and Prices in the Long Run and Open Economies, I need assistance with the below.
Net working capital and total long-term capital : What are Geomorph’s net working capital and total long-term capital?
Develop an entrepreneurial product or service : An Entrepreneurial Venture - Individuals are to develop an entrepreneurial product or service that could be commercialised.
Determine the beta coefficient for stock : Determine the beta coefficient for Stock L that is consistent with equilibrium: = 13.25%; rRF = 3.3%; rM = 9%.
What annual nominal interest did your savings account : What annual nominal interest did your savings account earn assuming the interest was compounded quarterly?
Considering two mutually exclusive expansion plans : A company is considering two mutually exclusive expansion plans. Calculate each project's NPV. Calculate each project's IRR.

Reviews

Write a Review

Financial Management Questions & Answers

  Equity accounts-how many new shares will be distributed

The owners’ equity accounts for Freya International are shown here: Common stock ($.40 par value) $ 27,500 Capital surplus 375,000 Retained earnings 818,120 Total owners’ equity $ 1,220,620 a-1 If Freya stock currently sells for $40 per share and a 1..

  Price a 6 month maturity treasury bill to sell for

Suppose investors can earn a return of 2% per 6 months on a Treasury note with 6 monthsremaining until maturity.- What price would you expect a 6-month maturity Treasury bill to sell for?

  What makes home equity loan different from other loans

What are the ways the fund of funds create value. What makes a home equity loan different from other loans?

  Gain or loss will he recognize on the sale

Nigel received a Land Rover from his mother as a gift. Mom had purchased the Land Rover two years earlier for $65,000, but its fair market value at the date of the gift was only $50,000. No gift tax was paid by Mom at time of the gift.

  What is the required return on the companys stock

Tell Me Why Co. is expected to maintain a constant 6.8 percent growth rate in its dividends indefinitely. If the company has a dividend yield of 8.6 percent, what is the required return on the company’s stock?

  What will happen to the yields on junk bonds

What is a junk bond? Predict what will happen to the yields on junk bonds as the level of economic activity rises and falls during the business cycle.

  What is effective annual rate for each compounding period

What is the effective annual rate (EAR) for each compounding period in part a?

  What is ethics

What Is Ethics? Think of a person who did something morally wrong, at least to your way of thinking. What was it?

  About the corporate tax liability

The Talley Corporation had a taxable income of $405,000 from operations after all operating costs but before (1) interest charges of $81,000, (2) dividends received of $12,150, (3) dividends paid of $32,400, and (4) income taxes. What are the firm's ..

  Fixed asset is fully depreciated over life of the project

A five-year project has an initial fixed asset investment of $290,000, an initial NWC investment of $26,000, and an annual OCF of −$25,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required re..

  What is the project expected rate of return for next year

To get a rough idea of the project's profitability, what is the project's expected rate of return for the next year ?

  What is the coupon rate of the bonds

The bonds had a percentage return over the past six months (from 6 months ago to today) of 6 percent. What is the coupon rate of the bonds?

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