What will be the total debt ratio at the end of next year

Assignment Help Accounting Basics
Reference no: EM131809076

Problem

BD Lean, Inc. (BDL) had sales of $200,000 on which it earned a net income of $22,000. It has a total debt of $51,000 and total equity of $60,000. Last year, BBL paid dividends of $6,000. What will be the total debt ratio at the end of the next year if the company grows at the internal growth rate (IGR)?

Reference no: EM131809076

Questions Cloud

What is the purpose of a bank reconciliation : What is the purpose of a bank reconciliation? What are the reasons for differences between the cash reported in the accounting records and the cash balance.
Determining the irr : Assume that the lot will not be reassessed for the next 4 years (property taxes remain constant) and that the value increases by 20% before it is sold
Prepare the journal entries necessary at december : Ignore income tax effect, prepare the journal entries necessary at December 31, 2010 to record the above correction. The books of 2010 are still open
How the erosion of individual rights have impacted business : Discuss John Locke's influence on the Founders of the United States. Specifically, draw parallels between Locke and the Founding Documents.
What will be the total debt ratio at the end of next year : What will be the total debt ratio at the end of the next year if the company grows at the internal growth rate (IGR)?
What is the rate of return for the following project : What is the rate of return for the following project? It costs $300,000 to start and returns $45,000 the first year
Determine the rate of return : The Afar Jewel Mining Company has just issued a 0% coupon bond priced at $423. If the bond is bought today and in 2 years is sold for $502.50
Explain the fundamental aspect of management : Provide an example of how each fundamental aspect of management might be carried out in this scenario.
Prepare two sales budget by quarter : Prepare two Sales Budget by Quarter, given the following information. Beginning A/R Balance is $25,000, collected in its entirety in the first quarter.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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