Percentage of debt in the corporation

Assignment Help Financial Management
Reference no: EM131905489

Joe owns and operates Socccer Stores of America. He has $250000 of his own money in the business as equity capital, but because of the use of debt, the total value of his stores is $1000000. Calculate the percentage of debt in the corporation, and the corporation's leverage factor.

Percentage of debt in the corporation= % _____

Place your answer in percentage form with two decimal places.

The corporation's leverage factor= _____

Place your answer as a number with two decimal places.

Reference no: EM131905489

Questions Cloud

Make any other deposits after the initial deposit : how much to the nearest dollar do you need to deposit now to meet your wishes? You will not make any other deposits after the initial deposit.
Make earnings per share the same for ski and board : Calculate the level of EBIT that would make earnings per share the same for Ski and Board.
The return on rush corporation in state of recession : The return on the Rush Corporation in the state of recession is estimated to be -25% and the return on Rush in the state of boom is estimated to be 33%.
Considering high-tech computer-controlled milling machine : "Wilson Machine Tools is considering a high-tech computer-controlled milling machine at a cost of $88,000.
Percentage of debt in the corporation : Percentage of debt in the corporation. Joe owns and operates Socccer Stores of America.
Assume perfect markets-adams return on equity : Calculate Adams's and Bob's return on equity if their respective businesses produce earnings before interest and tax of $6000. Assume perfect markets.
How much will you have per dollar invested in two years : How much will you have per dollar invested in one year? How much will you have per dollar invested in two years?
Require effective annual return : If you require an effective annual return of 10 percent on this investment, how much will you pay for the contract today?
How much will you pay for policy : How much will you pay for the policy?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the break-even point in units for poseidon swim

The Poseidon Swim Company produces swim trunks. What is the break-even point in units for Poseidon Swim?

  What is the cost of equity capital

Winston’s has a beta of 1.08 and a cost of debt of 8 percent. The current risk free rate is 3.2 percent and the market rate of return is 11.47 percent. What is the company's cost of equity capital?

  Determine whether a long or short hedge is appropriate

For each of the following situations, determine whether a long or short hedge is appropriate.

  Equilibrium interest rate-quantity of loanable funds

Graphically illustrate the effect on the equilibrium interest rate and quantity of loanable funds.

  Assume required rate of return

What is the value of a bond that has a par value of $1000, a coupon rate of 8.26% paid annually and that matures in 30 years? Assume a required rate of return on this bond is 8.65%.

  Debt is required to implement the new capital structure

Capital structure and dividend policy A large travel company owns a resorts and hotels. The CFO wants to change the company's capital structure. The change will mean that debtratio (debt-to-value-ratio) is increased to 50% by a large issuance of new ..

  What is the expected return on asset x

Capital asset pricing model. What is the expected return on asset X if it has a beta of 0.85, the expected market return is 11.50 percent, and the risk-free rate is 5.75 percent?

  Prepayment penalty based on loan balance

If the bank charges her a 1 percent prepayment penalty based on the loan balance, how much must she pay the bank on November 1, 2015?

  What is the minimum interest rate

Dennis earns $55,000 in the current period and will earn $85,000 in the future. What is the minimum interest rate that would allow Dennis to con- sume $180,000 in the future period? What is the maximum interest rate that would allow Dennis to con- su..

  Determine how much money you will have

Determine how much money you will have if you currently have nothing saved and you deposit $500 annually for the next 20 years at a 10% rate of return and a 28% marginal tax rate.

  Planning for savings program

A father is now planning a savings program to put his daughter through college. She is 13, she plans to enroll at the university in 5 years

  Describe the independent variable-dependent variable

Describe a regression relationship you think might exist. Be sure to describe the independent variable, dependent variable, and the type of relationship you think would exist (positive or negative)

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