User Account

All Pages

What would its new debt-to-equity ratio be

Assignment Help Finance Basics
Reference no: EM132554362

A firm has assets of $237 million, of which $24 million is cash. It has debt of $93 million. If the firm were to use its cash reserves to repurchase $9.6 million of its stock, what would its new debt-to-equity ratio be?

Reference no: EM132554362

Questions Cloud

Implementing security policies in organization : Implementing security policies in an organization requires separation of duties when it comes to the IT staff.
Calculate the npv for both projects : Calculate the NPV for both projects if the discount rate is 10%. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Decision modeling with spreadsheets : Decision modeling with spreadsheets is regarded as clearly the most popular end-user modeling tool.
Describe randomized block design : Describe a randomized block design. How is this design different from an independent experimental design?
What would its new debt-to-equity ratio be : If the firm were to use its cash reserves to repurchase $9.6 million of its stock, what would its new debt-to-equity ratio be?
Growth rate of their free cash flows : Net income$60,000+ Depreciation+$6,000 - Capital Expenditures-$7,000 - Increases in Working Capital -$2,000
What challenges would encounter : How would you address these with the persons responsible? Who would be the stakeholders with the issue? What challenges would you encounter?
Explain data mining : Would use predictive or descriptive data mining at this point? What data would you use to research this? What time length of data would use for this analysis?
What is the return on portfolio-harley-davidson : If the price of Harley-Davidson increases to $50 per share and the price of Yahoo decreases to $20 per share, what is the return on your portfolio?

Reviews

Write a Review

Finance Basics Questions & Answers

  How have the propotional components of the composite

Over the years 1980 to 2000, how have the propotional components of the composite assets of publicly traded U.S. nonfinancial firms changed? Include quantitative evidence in your answer.

  Evaluate the cost of capital

Evaluate the cost of capital (wacc) for use in a capital budgeting decision model. Make sure to define each component of the formula. Explain how the resulting cost of capital (wacc) is used within a capital budgeting model. How can the Capital Asset..

  Determining the price of securities

1. What is the primary factor that determines the price of securities? Can you think of another factor that might significantly affect how investors value the first factor? (Think hard: this second factor isn't mentioned in the chapter.)

  Estimated annual revenue

Company A wants to set up a new factory. Building Cost = 30,000 (assume straight-line depreciation over 30 yrs with no salvage value)

  Is nafta unfair to american farmers

Could Sunshine Farms differentiate its products by placing a "Grown in the USA" label on them in order to charge a premium price?

  What is strategic management

What is strategic management? What are the main benefits associated with its main attributes?

  Isabella construction and interior design

Isabella Construction and Interior Design is an all-equity company in Central Michigan. The CFO John Thornton Jr. is considering moving

  Explaining statement of cash flows

Describe the content and layout of a statement of cash flows, including it three sections. List at least three transactions classified as investing activities in a statement of cash flows.

  What is the compound growth rate of dividends

Assume a retention ratio of 0.45 and a historical return on equity (ROE) of 0.18. Using these two additional pieces of information, calculate an alternative estimate of dividend growth rate, g.

  What is the total cash outflow at time zero

Project XYZ, requires an investment in equipment of $500,000 to replace existing equipment. The existing equipment will produce after-tax salvage value of $50,000. Net working capital requirements are increased by $50,000. What is the total cash o..

  Problem regarding the investment strategies

An investor believes that the price of a stock, say IBM's shares, will increase in the next 60 days. If the investor is correct, which combination of the following investment strategies will show a profit in all the choices?

  Why must a countrys currency be devalued

Why must a country's currency be devalued? What is failing in the economy?

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