User Account

All Pages

What is the maximum leverage ratio

Assignment Help Accounting Basics
Reference no: EM133003510

Question - Suppose an investment pays off $800 or $1,600 per $1,000 invested with equal probability. Suppose you have $1,000 in savings and can take a loan for an additional $4,000 to invest. What is the maximum leverage ratio you could have and still have enough to repay the loan in the event the bad outcome occurred?

Reference no: EM133003510

Questions Cloud

Discuss the impact of social media on market functions : Discuss three strategies to overcoming barriers to introducing new policies and procedures and Discuss the impact of social media on market functions
Determine target sales needed to earn : Information for Pueblo Company follows, The total fixed costs are $30,000. Determine target sales needed to earn a $25,000 target profit.
Explain the concept of ethnography in market research : Describe the most common methods of analysing qualitative and quantitative data and Discuss why qualitative and quantitative data both play an important role
What does profitability analysis mean : What does profitability analysis mean to you? Why do companies analyze profits? What is Analysis? Do you believe that it is necessary to analyze profits?
What is the maximum leverage ratio : What is the maximum leverage ratio you could have and still have enough to repay the loan in the event the bad outcome occurred
Volatility and a correlation with the market : 1.You expect KT Industries (KTI) will have earnings per share of $4 and expect that they will pay out $ 1.50 of these earnings to shareholders in the form of a
What type of financing resource is kiran using : What type of financing resource is Kiran using? Kiran needs additional short-term financing for his robotics company, so he asks his suppliers.
What was the amount dividends paid by joanna : What was the amount dividends paid by Joanna in the current period given the following information - Change in Stockholders' Equity $10,000
What ratios that measure a company ability to manage : What Ratios that measure a company's ability to manage its long-term debt are? Financing is appropriate for a company in what stage of development?

Reviews

Write a Review

Accounting Basics Questions & Answers

  What was bachman direct labor rate variance

Timmer Bachman founded the Bachman Corporation over 25 years ago. The company's genesis was the unique climbing apparatus developed by Timmer, an avid mountaineer.

  London purchased a piece of real estate last year for 81200

london purchased a piece of real estate last year for 81200. the real estate is now worth 101400. if london needs to

  Prepare a sales budget by quarter

Assume that sales for each quarter in 2012 will be 33 percent higher than they were in 2011 and the price per tour is $88. Prepare a sales budget by quarter

  Distinction between public and private companies

Why do UK accounting rules for individual companies differ not simply on the distinction between public and private companies?

  Estimate the company energy cost behavior

Estimating Cost Behavior; High-Low Method - Use the high-low method to estimate the company's energy cost behavior and express it in equation form

  Calculate the number of months required to repay the loan

A business takes out loan for $250,000,what is the formula to calculate the number of months required to repay the loan completely? What is the formula result?

  Which global harmonization of account principle not require

Which Global harmonization of accounting principles does not require? That one world-wide organization enforces global standards in all countries

  Provide the journal entry to record the issuance of the bond

Provide the journal entry to record the issuance of the bonds January 1, and the interest payments on March 31, June 30, September 30, and December 31.

  Describe what the p-value

Describe what the P-value of the 2-sample t-test of your example in part (1) means. Note that you are not being asked to provide a general definition of the P-v

  In whose inventory should the merchandise be included

If the merchandise is un-sold at the end of period, in whose inventory should merchandise be included? Which company would report it in its financial statement.

  How much capital cost allowance can be claimed for asset

Quality Inc. purchased a copyright for $150,000 on October 1, Year 1. The copyright expires on September 30, Year 11. Quality has a December 31 year end.

  Prepare the liabilities section of pedricks balance sheet

Identify which of the above liabilities are likely current and which are likely longterm. Say if an item fits in neither category. Explain the reasoning for your selection.

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