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

  Find percent of the population registered to vote

If during an election there were 6372 listed voters & 3560 listed voters voted, what percentage of the listed voters actually cast a vote.

  How the imputation tax system works in australia

Briefly explain how the imputation tax system works in Australia by providing an example. Assume a 30% corporate tax rate and a 15% marginal tax rate for the investor.

  Compute the three equal payments

To borrow $2,700, you are offered an add-on interest loan at 6 percent. Three loan payments are to be made, one at four months, another at eight months, and the last one at the end of the year.

  Question 1at the beginning of 20x2 dahl ltd acquired 8 of

question 1at the beginning of 20x2 dahl ltd. acquired 8 of the outstanding common shares of tippy ltd. for 400000.nbsp

  How does a firm capital structure relate

How does a firm's capital structure relate to your personal capital structure? In what ways are they similar? Provide examples of how you use debt and equity in your personal financial life that parallels the basic capital structure decisions made..

  What is the exercise value of the option

A 6-month put option on Makler Corp.'s stock has a strike price of $47.50 and sells in the market for $8.90. Makler's current stock price is $41.00. What is the exercise value of the option?

  Consider the information for the following four firms which

consider the information for the following four

  What is the expected return on the portfolio

What are the expected returns on Stock J and Stock K individually?

  What maximum growth rate can abbai achieve

To support its future growth, the firm plans to raise some debt from creditors while keeping its debt-equity ratio unchanged. What maximum growth rate can Abbai achieve?

  What is the expected return on an equally weighted portfolio

What is the expected return on an equally weighted portfolio of these three stocks? b. What is the variance of a portfolio invested 20 percent each in A and B, and 60 percent in C?

  Ratio calculation and analysis

As loan analyst for Utrillo Bank, you have been presented the following data: Each of these corporations has requested a loan of $50,000 for 6 months with no collateral offered.

  What dividend did the stock pay

A financial adviser claims that a particular stock earned a total return of 10% last year. During the year the stock prices rose from $30 to $32.50. What dividend did the stock pay?

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