What is the debt-equity ratio

Assignment Help Financial Management
Reference no: EM131059831

Neal Enterprises has no debt. Its current total value is $72 million. Assume the company sells $33 million in debt.

Requirement 1: Ignoring taxes, what is the debt-equity ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Requirement 2: Assume the company’s tax rate is 32 percent. What is the debt-equity ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Reference no: EM131059831

Questions Cloud

What is the overall gain from leasing : Nodhead College needs a new computer. It can either buy it for $260,000 or lease it from Compulease. The lease terms require Nodhead to make six annual payments (prepaid) of $64,000. Nodhead pays no tax. What is the NPV of the lease for Nodhead Colle..
Magnitude and direction of the acceleration : One force of 30 N acting East and a second second force of 20 West on an object of a mass m = 20 Kg. What is the magnitude and direction of the acceleration a of the object?
Consider the criminological data : Consider the criminological data of Table 7.1 (Example 7.1): (a) Repeat the analysis using (1) the matrix YTY and (ii) the cosine matrix (Section 2.4). Compare your results.
Induced emf appears in the coil : The current in the solenoid is reduced to zero and then raised to 2.5 A in the other direction at a steady rate over a period of 0.005 s. What induced emf appears in the coil while the current is being changed?
What is the debt-equity ratio : Neal Enterprises has no debt. Its current total value is $72 million. Assume the company sells $33 million in debt. Ignoring taxes, what is the debt-equity ratio? Assume the company’s tax rate is 32 percent. What is the debt-equity ratio?
Discuss research paper- composition : There are six different oils that are used or have been used in aviation reciprocating-engines. Pick one type of aviation oil used in reciprocating engines and write a research paper. The research paper must be written as though you are providing ..
Direction of the acceleration a of the object : One force of 30 N acting East and a second second force of 30 West on an object of a mass m = 20 Kg. What is the magnitude and direction of the acceleration a of the object?
Dividend return next quarter of certain amount : There are those that like to look at the return, or a dividend, that they would get for purchasing the stock. If you ever pay attention to the financial area of the news where companies say that they expect to have a dividend return next quarter of a..
Analysis of the ethical concerns raised by the situation : The paper must identify which ethical outlook as applied to this particular situation will result in the best legal outcome for the business.

Reviews

Write a Review

Financial Management Questions & Answers

  Bonds for some much-needed expansion projects

BDJ Co. wants to issue new 25-year bonds for some much-needed expansion projects. The company currently has 7.8 percent coupon bonds on the market that sell for $1,125, make semi-annual payments, and mature in 25 years. Required: What coupon rate sho..

  Determine the annual payment

Determine the annual payment on a $15,000 loan that is to be amortized over a four-year period and carries a 10 percent interest rate. Prepare a loan amortization schedule for this loan.

  Calculate investors required rate of return today

(Bonds) A company has an outstanding issue of $1,000 face value bonds with a 9.5% annual coupon and 20 years remaining until maturity. The bonds are currently selling at a price of 90 (90% of face value). An investment bank has advised that a new 20-..

  The acquiring company enters on its balance sheet

Using fair value accounting for goodwill, under FAS 141R, determine the amount of goodwill that "the acquiring company" enters on its balance sheet in the following situation: Talmadge Corporation is acquiring the target Tyler, Inc. in a merger. What..

  What pure interest rate is implied by these assumptions

The Habender Company just issued a two-year bond at 12% Inflation is expected to be 4% next year and 6% the year after. Habender estimates its default risk premium at about 1.5% and its maturity risk premium at about.5%. Because it's a relatively sma..

  What is the intrinsic value of deployment specialists stock

Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 20% for two years and then at 5% thereafter. If the required return for Deployment Specialists is 8.0%, what is the intrinsic value of Deployment Specialists sto..

  Calculate value for project that requires initial investment

Calculate the following values for a project that requires an initial investment of $38,370 and has equal annual cash inflows of $10,000 each year for the next 8 years. Assume a cost of capital of 14%. You must show your work for full credit.

  Cash flows as those from the rule in the contract

Your US-based firm is about to sign a contract to buy a machine from a manufacturer based in Singapore. The price of the machine is S$ 3,000,000 and the payment is to be made in US$ after one year (at t = 1) according to the following rule. Show the ..

  What is the amount of the firms net fixed assets

A long-term debt ratio of 0.50 and a current ratio of 1.40. Current liabilities are $1,000, sales are $5,125, profit margin is 9.20 percent, and ROE is 16.20 percent. What is the amount of the firm's net fixed assets?

  What is expected time to complete task with an optimistic

What is the expected time to complete a task with an optimistic, most likely, and pessimistic times of 3, 4 and 7 days respectively? What is the standard deviation of the same task, assuming the estimates were made at the 99% plus level?

  What is the annual ordering cost of the post card inventory

Cheeseburger and Taco Company purchases 10,075 boxes of cheese each year. It costs $25 to place and ship each order and $3.38 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. What is t..

  Develop a spreadsheet model for a listed australian company

The Assignment for Accounting Modelling ACCT3003. Develop a spreadsheet model for a listed Australian company using advanced MS Excel functions as part of its construction with a written explanation of your financial model and how the output from ..

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