Reference no: EM132780684
Sherlock Homes, a manufacturer of low-cost mobile housing, has $4,900,000 in assets.
Temporary current assets $1,080,000
Permanent current assets $1,660,000
Capital assets $ 2,160,000
Total assets $4,900,000
Short-term rates are 12 percent. Long-term rates are 8 percent. (Note that long-term rates imply a return to any equity). Earnings before interest and taxes are $1,040,000. The tax rate is 40 percent. Assume the term structure of interest rates becomes inverted, with short-term rates going to 12 percent and long-term rates 4 percentage points lower than short-term rates.
If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of short-term financing, what will earnings be after taxes?
What is Earning after taxes
Calculate xyz total debt-to-equity ratio
: Calculate XYZ's total debt-to-equity ratio, where total debt = total liabilities.
|
What is the average selling price for each share of stock
: McRib Enterprises reported the following information at December 31: What is the average selling price for each share of preferred stock
|
Why was underpricing or overpricing on listing price
: Comparison of financial statements (balance sheet, income statement, cash flow from prospectus and actual performance a year after IPO)
|
Evaluate efficacy of the design of human computer interface
: Everything we touch that is electronic has a Human to Computer Interface (HCI). Some companies put a lot of effort into the user experience; some, not so much.
|
What is earning after taxes
: Sherlock Homes, a manufacturer of low-cost mobile housing, has $4,900,000 in assets.
|
What entries will Hatfield prepare on December
: The lease is nonrenewable and the tractor reverts to Star at the end of the lease term. What entries will Hatfield prepare on December 31, 2018
|
Which activities are carried
: Controlled by management, and materially changes either the scope of an entity's activities or the manner in which these activities are carried out.
|
Explain the appropriate accounting treatment to a colleague
: Explain the appropriate accounting treatment to a colleague, boss, or business partner who has a basic understanding of accounting?
|
Expected level of sales for the next year
: What is the expected level of sales for the next year?
|