Which company will have the higher price to revenue ratio

Assignment Help Financial Management
Reference no: EM131603638

Two companies are identical in every way but one. The only difference is that 35% of Company A’s liabilities are made up of short-term debt while 10% of Company B’s liabilities are made up of short-term debt. Which company has a higher risk of bankruptcy, and given that, which company will have the higher price to revenue ratio?

Reference no: EM131603638

Questions Cloud

What legislation imposes the given disclosure obligations : Financial advisers have a number of disclosure obligations when they provide financial services to a client.
Risk-based standards for capital adequacy and liquidity : The Basel Committee on Banking Supervision prescribes risk-based standards for capital adequacy and liquidity.
Critically analyse the application of leadership styles : This assessment provides the student with the opportunity to critically analyse the application of leadership styles in clinical practice
What is block ownership : Suppose you decide (as did Steve Jobs and Mark Zuckerberg) to start a company. Your product is a software platform that integrates a wide range of media.
Which company will have the higher price to revenue ratio : which company will have the higher price to revenue ratio?
How much in dividends did the firm pay to shareholders : In its most recent financial statements, Del-Castillo Inc. reported $70 million of net income and $900 million of retained earnings.
What would the equity multiplier : What would the Equity Multiplier (average assets divided by average equity) need to be for this firm to have an ROE of 20%?
Digital commerce marketing and advertising strategies : Explain your digital commerce marketing and advertising strategies and the tools you will use to reach your potential customers.
What is mary effective annual rate : During that period the stock paid dividends of $2.58 per share. What is Mary’s effective annual rate?

Reviews

Write a Review

Financial Management Questions & Answers

  Marketing efforts on retention of current students

Assume you are the marketing director at school, which wants to focus its marketing efforts on retention of current students.

  Bonds on the market making annual payments

Essary Enterprises has bonds on the market making annual payments, with ten years to maturity, a par value of $1,000, and selling for $956. At this price, the bonds yield 6.3 percent. What must the coupon rate be on the bonds?

  How much lower will your total return be because of traders

How much lower will your total return be because of your trades?

  What is the length of the annuity time period

The annuity pays $6,200 a year at an annual interest rate of 5.5 percent. What is the length of the annuity time period?

  What does this firms beta measure

A rapidly growing firm is currently paying a dividend of $1.75. What does this firm’s Beta measure?

  Inventory turnover that henderson corporation is expecting

Henderson Corporation is supplier of alloy ball bearings to auto manufacturers in Detroit. Inventory turnover that Henderson Corporation is currently expecting

  What was boatmens real rate of return in percents

Last year, Boatmen of River Styx earned a rate of return of 14.85 percent on their bond investments. During that time, the inflation rate was 6.71 percent. What was Boatmen's real rate of return (in percents)?

  Due to the bond convertible feature

A convertible bond has a 7.30 percent, semi-annual coupon and a conversion rate of $31.25. The bond has a face value of $1,000 and matures in 11.5 years. The current yield to maturity for bonds of similiar risk is 6.2 percent, but due to the bond's c..

  Estimates for long-term project it is considering

Benson Designs has prepared the following estimates for a long-term project it is considering. Determine the net present value (NPV) for the project.

  Current yield-capital gains yield and yield to maturity

What is the yield to maturity? what is the expected current yield? what is the expected capital gains yield?

  What is the firm optimal capital structure

WACC and Optimal Capital Structure F. Pierce Products Inc. is considering changing its capital structure. F. Pierce currently has no debt and no preferred stock, but would like to add some debt to take advantage of low interest rates and the tax shie..

  Assumption for future dividend growth rate

Our company is Target? First search the Yahoo finance and find the target data? Use dividend discount model to calculate the cost of equity Explain and conceptually justify your assumption for future dividend growth rate

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