User Account

All Pages

Roic breakdown a firms hl and ll are identical except for

Assignment Help Finance Basics
Reference no: EM13485776

ROIC breakdown, a firms HL and LL are identical except for their leverage ratios and the interest rates they pay on debt. Each has $28 million in invested capital, has $5.6 million of EBIT, and is in the 40% federal-plus-state tax bracket. Firm HL, however, has a debt-to-capital ratio of 50% and pays 11% interest on its debt, whereas LL has a 30% debt-to-capital ratio and pays only 9% interest on its debt. Neither firm uses preferred stock in its capital structure.

Calculate the return on invested capital (ROIC) for each firm.

ROIC for firm LL is ?

ROIC for firm HL is?

Reference no: EM13485776

Questions Cloud

A share of common stock just paid a dividend of 100 if the : a share of common stock just paid a dividend of 1.00. if the expected long-run growth rate for this stock is 5.4 and
You have been provided with the following data rrf 410 : scanlon inc.s cfo hired you as a consultant to help her estimate the cost of capital. you have been provided with the
If d1150 gwhich is constant53 and p056 whats the stocks : if d11.50 gwhich is constant5.3 and p056 whats the stocks expected capital gains yield for the coming
If d1125 gwhich is constant47 and p02900 whats the stocks : if d11.25 gwhich is constant4.7 and p029.00 whats the stocks expected dividend yield for the coming
Roic breakdown a firms hl and ll are identical except for : roic breakdown a firms hl and ll are identical except for their leverage ratios and the interest rates they pay on
If d0225 gwhich is constant35 and p078 whats the stocks : if d02.25 gwhich is constant3.5 and p078 whats the stocks expected dividend yield for the coming
Morin companys bonds mature in 8 years have a par value of : morin companys bonds mature in 8 years have a par value of 1000 and make an annual coupon interest payment of 65. the
General electric ge has about 103 billion shares : general electric ge has about 10.3 billion shares outstanding and the stock price is 90.27. the pe ratio is about 18.3.
Dyl incs bonds currently sell for 1180 and have a par : dyl incs bonds currently sell for 1180 and have a par value of 1000. they pay a 65 annual coupon and have a 15-year

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd