What is b debt ratio

Assignment Help Finance Basics
Reference no: EM131890636

Company A has sales of $1,800, assets of $600, a debt ratio of 40 percent, and an ROE of 15 percent. Company B has the same sales, assets, and net income, but its ROE is 30 percent. What is B's debt ratio? (Hint: Begin by looking at the Du Pont equation.)

Reference no: EM131890636

Questions Cloud

What issues arise based upon the districts demographics : Given your results, and your previous district analysis research, what's your platform? Choose at least three issue stands to develop.
What is the expected return on portfolio : You place 30% of your money in A and 70% in B. What is the expected return on your portfolio? Justify your answer
Percentage of company capital structure consists of debt : Hook Industries's capital structure consists solely of debt and common equity. What percentage of the company's capital structure consists of debt?
Determining the risk premium : What are the various risk elements that are considered when determining the risk premium.
What is b debt ratio : Company B has the same sales, assets, and net income, but its ROE is 30 percent. What is B's debt ratio? (Hint: Begin by looking at the Du Pont equation.)
Why were arabs able to conquer a vast empire so quickly : How did Ethiopia benefit from its position in the horn of Africa? Why were Arabs able to conquer a vast empire so quickly?
What is your assessment reidmans thesis in his article : What is your understanding or assessment of the problems caused by lack of a single, consensus definition of homeland security.
What the price of the oil turns out to be : Assume you are going to drill in one year no matter what the price of the oil turns out to be. Ignore real options.
Describe the plot and flow of the show : Describe the plot and flow of the show (so I know you watched it) and then critique the show; did you like it? Did you enjoy the actors? etc.

Reviews

Write a Review

Finance Basics Questions & Answers

  Convertibility feature be exercised by a bondholder

In what type of economic circumstances would a call feature be beneficial to a firm? In what ways does it increase risk for the bondholder? When would a convertibility feature be exercised by a bondholder?

  Compute the beta of the assets of the hughes acquisition

Compute the beta of the assets of the Hughes acquisition, assuming no taxes, by taking the average of the asset betas of Lockheed and Northrop.

  Values of the three first bonds

A. If the market yield is 7 percent, what are the values of the three first bonds (assume a face value of $1,000)?

  Record the issuance of the installment note payable

On January 1, 2012, Tropical Paradise borrows $40,000 by agreeing to a 6%, fiveyear note with the bank. The funds will be used to purchase a new BMW.

  A what is the conversion ratio b what is the conversion

conversion ratio. when a 50000 convertible bond is issued the market price of the stock is 25 a share. each 1000 bond

  Determine the payback period for the project

A project requires an initial outlay of $100,000, and is expected to generate annual net cash inflows of $28,000 for the next 5 years. Determine the payback period for the project.

  Calculate the data point

a)The z-score that corresponds to a particular data point (x) is 1.42. Calculate the data point. Give your answer to 2 decimal places.

  What effect would this finding have on your responses

Use the free cash flow valuation model to estimate CoolTech's common stock value per share. Judging on the basis of your finding in part a and the stock's offering price, should you buy the stock? On further analysis, you find that the growth rate in..

  You buy an eight-year bond that has a 6 current yield and a

you buy an eight-year bond that has a 6 current yield and a 6 coupon paid annually. in one year promised yields to

  Leslies unique clothing stores offers a common stock that

leslies unique clothing stores offers a common stock that pays an annual dividend of 2.30 a share. the company has

  What is the net present value of the investment in the

a new furnace for your small factory will cost 4500 a year to install and will require ongoing maintenance

  What is the operating cash flow during 2014 what is the

weiland co. shows the following information on its 2014 income statement sales 157000 costs 81100 other expenses

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