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QS 10-17 (Algo) Debt-to-equity ratio LO A2 Total liabilities Total equity Atlanta Company "$510, 000 570, e00 Spokane Company $ 484,500 1,529,000 Compute the debt-to-equity ratio for each of the above companies. Debt to equity ratio Choose Numerator: Choose Denominator: =Debt-to-equity ratio Atlanta Company Spokane Company

Dv E7 A 1 Calibri (Body) 11 B ... Mab く General v x✓ fx B C D E F G H J K 2 3 Ursala, Inc., has a target debt-equity ratio of .65. Its WACC is 10.4 percent, and the tax rate is 23 percent. a. If the company's cost of equity is 14 percent, what is its pretax cost of debt? b. If instead you know that the aftertax cost of debt is 5.8 percent, what is the cost of equity? st 4 Input Area: 5 6 Debt-equity ratio 0.65 7 WACC 10.40% 8 Tax rate 23% 9 a. Cost of equity 14% 5.80% 10 b. Aftertax cost of debt 11 12 (Use cells A6 to C10 from the given information to complete this question.) 13 14 Output Area: 15 16 a. RD 17 lb. RF

QUESTION 7 Presented below are the comparative December 31 financial statemenes for Dubai Industries, Inc. tin s Millions). Prepare a statement of cash flows for December 31, Year 2 uning the indirect method. Dubai Iedustries, Inc Balance Sheets A: December 31, Year 2 and Year 1 Year 2 Year1 Cash S96,719 Accounts Recetvable 100,000 85.313 Inventory 206.250 181.250 Prepaid Imsurance Land. Buildings, and Equipment 2.500 1.562.300 1406.250 Accumulated Depreciation (762,500) (715.000 Investments 10.20 Total Assets 1225 219 Accounts Payable Salartes Piryahle 25.000 3025 Notes Payable 31.250 第750

Q17 8.5% bonds sold at OMR 100 less cost of flotation at 5% and cost of underwriting commission charges at 2.5%. If the firm pays tax at a rate of 25%, what is the cost of debt after tax? a. 2.29% b. 5.97% c. 6.89% d. 6.71%

Palle Day 8 0 8 트 W CURRENT RATIO (QUE Akce Green, Liabilis). 13495,000 46.282,000 ACCOUNTING &fil 155848926 WWTHMINIS CAPITAL (Current Assell » Current Listesi 46.282,000 DEBT RATIO (Tokál Liabil[list/Tab] Ascób) 98,284,000 167558,000 7213000 0.505518 EARNINGS PER SHATTE [Not income:/Weighted Average Common Snares Outstanding] BEORANG E 4,049,000 107.076 1.882122474 PRIC EARNINGSRALIA AKME P² Alani ni alim / PSI. NAVOT

A10

RNOA + FLEV X Spread  X NCI Ratio = ROE   25.89% +FLEV X 24.37% X 1.0026 =50% What is FLEV? Please show steps

I corporate bond offering 10%, muncipal hand offering 7% interest with other conditions remaining the same, which one is a investment 1 is 20% Assume your better. tax bracket 2 what are the limitations of financial statements and financial ratio analyses 2.

Additional short-term borrowings $ 20,e00 Purchase of short-term stock investments Cash dividends paid Interest paid 5,e00 16,000 8,e00 Compute cash flows from financing activities using the above company information. (Amounts to be deducted should be indicated by a minus sign.) Financing Activities nt ences 7:14 3/27/2 Insert Prt Sc F2 F3 F4 F6 F7 F8 F9 F10 F11 F12 Fn 28 Lock

Question 1 The trial balance  of beta limited as as 31st December,2019 is as follow:                                                                                  Debit        Credit                                                                                   GH¢          GH¢ Sales and Purchases                                                20,000        50,000 Inventory                                                                  8,000 Distribution costs                                                     8,000 Administration expenses                                         15,550 Trade Receivables and Payables                             12,400        20,000 Cash and Bank                                                        8,100 Ordinary Shares(Gh¢ 0.50)                                                        52,000 Revaluation reserves                                                                 8,000 10% Redeemable Preference shares (GH¢ 1)…

P15.6

Long-Term Debt 2,000 2564 Notes Payable 1,000 820 Dividends Paid 410 410 Cash 800 Income Statement Questions: What is SinCo's EBITDA for the current year? What is SinCo's EBIT for the current year? What is SinCo's Net Income for the current year? Balance Sheet Questions: 1482 x 1651 963.30 x What is SinCo's current year's Retained Earnings What is the current year's Total Liabilities and Shareholders Equity What is SinCo's current year's Total Assets What is SinCo's current year's Cash Balance What is SinCo's current year's Total Current Assets

CALCULATE MARKET VALUE OF DEBT

#10 Item Prior year Current year Accounts payable 8,123.00 7,716.00 Accounts receivable 6,048.00 6,607.00 Accruals 997.00 1,500.00 Cash ??? ??? Common Stock 10,094.00 11,603.00 COGS 12,653.00 18,393.00 Current portion long-term debt 4,911.00 5,090.00 Depreciation expense 2,500 2,763.00 Interest expense 733 417 Inventories 4,245.00 4,824.00 Long-term debt 14,141.00 13,226.00 Net fixed assets 51,826.00 54,004.00 Notes payable 4,339.00 9,940.00 Operating expenses (excl. depr.) 13,977 18,172 Retained earnings 28,688.00 30,532.00 Sales 35,119 45,044.00 Taxes 2,084 2,775 What is the firm's total change in cash from the prior year to the current year?   Answer format: Number: Round to: 0 decimal places.

Alternative Financing Plans Desmond Co. is considering the following alternative financing plans: Plan 1 Plan 1 $960,000 Issue 10% bonds (at face value) Issue preferred $1 stock, $10 par Issue common stock, $5 par Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming that income before bond interest and income tax is $576,000. Enter answers in dollars and cents, rounding to two decimal places. Earnings per share on common stock Earnings per share on common stock Plan 2 Plan 2 960,000 $480,000 800,000 640,000

Example one he information below has been extracted from the recently published accounts of Gabby Itd: Extracts from the income statement to 3gn April 2016; 2015 Sales Cost of sales 2016 (000) 11,200 (00) 9,750 6.825 8,460 Net profit before tax 465 320 The following expenses were charged Depreciation Loan note interest Interest on bank overdraft Audit fees 360 280 80 60 15 12 10 Tax 40 30 Balance sheet as at 30h April: 2016 2015 (000) (000) 00) (000) Assets Fixed assets Current assets Inventory Receivables 1.850 1,430 640 490 1.080 120 1,230 Cash 80 1,950 3,800 1,690 3,120 Total assets Equity and liabilities Ordinary share capital Retained earnings 800 800 1.310 2,110 930 1.730 18

Question The trial balance of Beta Limited as at 31st December, 2019 is as follows:   Debit Credit   GH¢ GH¢ Sales and Purchases 20,000 50,000 Inventory 8,000   Distribution costs 8,000   Administration expenses 15,550   Trade Receivables and Payables 12,400 20,000 Cash and bank 8,100   Ordinary shares (GH¢0.50)   52,000 Revaluation reserve   8,000 10% Redeemable preference shares (GH¢1)   9,000 10% Loan Notes   8,000 Property, Plant and Equipment 75,000   Investment property 10,000   Rental income from investment property   1,000 Retained profits at 1st January, 2019   3,000 Loan note interest 400   Preference dividend 450   Interim ordinary dividend 1,600   Corporate Tax   500 Suspense   8,000   159,500  159,500   The following is to be taken into account:     The inventory at cost on 31st…

Category Prior Year Current Year Accounts payable 3,147.00 5,976.00 Accounts receivable 6,925.00 8,910.00 Accruals 5,635.00 6,187.00 Additional paid in capital 19,527.00 13,950.00 Cash ??? ??? Common Stock 2,850 2,850 COGS 22,974.00 18,270.00 Current portion long-term debt 500 500 Depreciation expense 975.00 976.00 Interest expense 1,278.00 1,155.00 Inventories 3,048.00 6,717.00 Long-term debt 16,569.00 22,919.00 Net fixed assets 75,968.00 73,882.00 Notes payable 4,045.00 6,584.00 Operating expenses (excl. depr.) 19,950 20,000 Retained earnings 35,870.00 34,759.00 Sales 46,360 45,347.00 Taxes 350 920 What is the firm's cash flow from operations? What is the firm's dividend payment in the current year? What is the firm's net income in the current year?

QUESTION 6 Sorenson Co. is considering the following alternative plans for financing the company: Plan 1 Plan 2 Issue 10% bonds (at face) $100,000 Issue $10 poar common stock $150,000 50,000 Income tax is estimated at 40% of income. Determine the earnings per share of common stock under the two alternative financing plans, assuming income before bond interest and inc $39,000. Round your ansers to two decimal places. Earnings Per Common Share Plan 1 $ Plan 2 $ THIS QUESTION WILL ALSO BE CHECKED MANUALLY. QUESTION 7 On the first day of the fiscal year, a company issues a $960,000, 8%, 5-year bond that pays semiannual interest of $38,400, receiving ca n the chart of accounts below

Problem 2: Trody Co., from the previous problem, wants to prepare forecasted financial statements for the year 2015 using the percent of sales method, and the below additional given (Round numbers to the nearest dollar): Given forecasted sales of 2015: $6,500 b- The tax rate will be 40% in 2015. The company expected to distribute dividends of $750 in 2015. The interest rate on all interest-bearing loans will be 5% annually in 2015. The company is not intending to make changes to its fixed assets a- C- d- e- 1- The forecasted cost of goods sold for 2015 is expected to be: O a) $3,300 Ob) $3,738 c) $3,000 d) $4,250 e) None of the above. 2- Forecasted fixed expenses amount for 2015 is expected to ber

XYZ Company is considering the following financing plans. Plan 1 Plan 2 Plan 3 Bonds, 10% $3,000,000 Preferred stock, $100 $2,000,000 $1,000,000 par, 1% Common stock, $10 $5,000,000 3,000,000 $1,000,000 par $5,000,000 $5,000,000 $5,000,000 The company has earnings before interest and taxes of $750,000 and assumes a tax rate of 40%. Calculate the earnings per share for each plan. Plan 1 Plan 2 Plan 3 ΕΒΙΤ Interest EBT Таxes Net income Preferred div. Avail. for common Common shares Earnings per share

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10-8.5% bonds sold at OMR 100 less cost of flotation at OMR 5 and cost of underwriting commission charges at OMR 2.500. If the firm pays tax at a rate of 35%, what is the cost of debt after tax? a. 2.97% b. 5.52% c. 5.97% d. 3.21% Clear my choice

Alternative Financing Plans Frey Co. is considering the following alternative financing plans:   Plan 1 Plan 2 Issue 10% bonds (at face value) $960,000   $480,000   Issue preferred $1 stock, $10 par —   800,000   Issue common stock, $5 par 960,000   640,000   Income tax is estimated at 40% of income. Determine the earnings per share on common stock, assuming that income before bond interest and income tax is $768,000. Enter answers in dollars and cents, rounding to two decimal places. Plan 1 $ Earnings per share on common stock Plan 2 $ Earnings per share on common stock

b & c

Explain the table.