What is the ratio of price to be expected earnings

Assignment Help Accounting Basics
Reference no: EM132084428

Question - Equity-financed with 100,000 shares. An issue of $260,000 of debt with 12% interest. Repurchase 26,000 shares at $10 per share. $126,000 will be profits before interest.

A. What is the ratio of price to be expected earnings before it borrows the $260,000?

B. What will the ratio be after it borrows?

Reference no: EM132084428

Questions Cloud

What is the value of the total position : Suppose after a year the S&P 500 is $954 and the portfolio is worth $95 million. The options premium is $1 million. What is the value of the total position?
What is the cost of goods sold : On August 20, three units were sold. Using the last in, first out (LIFO) method, what is the cost of goods sold (COGS)
What would be a good strategy for him : Ryan is debating whether to gift property during his lifetime or to let his heirs inherit. What would be a good strategy for him
Calculate the minimum interest rate : The minimum interest rate (break-even point) at which they should consider buying the taxable bond (rounded to 2 decimal places) is
What is the ratio of price to be expected earnings : Equity-financed with 100,000 shares. An issue of $260,000 of debt with 12% interest. What is the ratio of price to be expected earnings
Average execution price per share : At 10:00:00:300 (i.e., when you reopen your eyes) you see the average execution price per share for your trade on the screen.
Respect to international diversification : How would i compare these two investment portfolios and discuss any options from the examples with respect to international Diversification?
What is the annualized rate of return geometric average : If the stock you bought at the beginning of 2007 for $65 per share grew to $126 by the end of 2012, what is the annualized rate of return
Required to retire the mortgage loan : You borrow $100,000 to buy a house; if the annual interest rate is 6% and the term of the loan is 20 years, what is the annual payment required

Reviews

Write a Review

Accounting Basics Questions & Answers

  Describe the microsoft office tool for the xbrltmprototype

XBRL is a very powerful analytical tool. To demonstrate just how powerful XBRL. Describe the Microsoft Office Tool for the XBRLTMPrototype.

  Explain about the audits of group financial statements

Audits of Group Financial Statements. The firm of Anderson, Olds, & Watershed (AOW) is the group auditor for the December 31, 2014.

  Seahawks company has two service departments maintenance

seahawks company has two service departments maintenance and cafeteria as well as two prodction departments mixing and

  At the end of 2014 aramis company has accounts receivable

at the end of 2014 aramis company has accounts receivable of 901710 and an allowance for doubtful accounts of 49850. on

  A petty cash fund a should have at least two custodians b

a petty cash fund a. should have at least two custodians b. is established to pay on-the-spot minor purchases. c.

  Which is not a part of the fraud theory approach

Which of the following is not a part of the fraud theory approach? What is the first step a fraud examiner following the fraud theory approach should take?

  Distinguish between product costs and period costs

Distinguish between product costs and period costs

  What the consequences of a credit policy that is too strict

Discuss the importance of businesses extending credit to customers. What are the consequences of a credit policy that is too strict

  The annual interest rate paid to the bond holders a lease

match each term with the correct definition.a.contingencyb.discountc.premiumd.capital leasee.stated ratef.effective

  Number of movies rented

A website that rents movies online recorded the age and the number of movies rented during the past month for some of their customers. Here are their data:

  Basics related to receipt of the common stock dividend

What is the total basis of the Apple Corporation stock, the per share basis, and gain recognized upon receipt of the common stock dividend?

  Making a statement of cash flows

Prepare a statement of cash flows in good form using the indirect format.

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