Q: Calculate the equity multiplier of the ABC Company if the total debt ratio of is 1.5
A: The given total debt ratio can also be written as : =TOTAL DEBT / TOTAL ASSETS
Q: 14. Bethlehem Corporation has a return on assets ratio of 6 percent. If the debt to total assets…
A: The return on equity is computed by dividing the Net income by the equity.
Q: X company has an unlevered cost of capital of 11%, a cost of debt of 8%, and a tax rte of 35%. What…
A: Debt-to-Equity ratio shows the proportion of debt capital including non-current liabilities and…
Q: Shoreline Shipping has a total debt ratio of 0.25. The debt-equity ratio is:
A: The debt-equity ratio can be calculated by dividing total debt by total equity. This ratio indicates…
Q: Shanfari Company is using two forms of financing - Debt and Equity. The Cost of Debt is 4.5% and the…
A: The weighted average cost of capital is the overall cost of capital of each source of raising…
Q: The leverage ratio is equal to average total __________divided by average _________________.a.…
A: Leverage ratio: It overlooks the mixture of debt and equity which is required for analyzing the…
Q: Queen, Inc., has a total debt ratio of .22. a. What is its debt-equity ratio? b. What…
A: Information Provided: Total debt ratio = 0.22
Q: Raskin LLC has a debt-equity ratio of 1.38. What is the equity multiplier?
A: The ratio that shows the portion of the assets that are financed by equity is term as the equity…
Q: Coco Kitchen has a WACC of 14%. It has 19% of return on equity, and 60% of debt-to-asset ratio…
A: WACC is the average cost of capital which is calculated by multiplying the weight with cost of…
Q: Garwryk, inc., which is finance with debt and equity, presently has a debt ratio of 78 percent. What…
A: Equity multiplier or firm multiplier is a ratio of total assets to stockholder's equity it says how…
Q: How do you determine the mix (percentages or weights) of debt vs equity from the Debt to Equity…
A: A company has several sources from where it can raise funds. It can issue equity shares and the…
Q: Fox company has a ratio of (total debt/total assets) that is above the industry average,and a ratio…
A: The correct option with proper explanation are as follows
Q: Some of the financial ratios of V, W, X, Y, and Z companies are calculated and presented in the…
A: Financial analysis is the analysis of a corporation on the basis of the financial items that are…
Q: Ab Inc has a total debt ratio of 0.10 What is the debt equity ratio and equity multiplier?
A: The debt-equity ratio is determined by debt divided by equity, whereas the equity multiplier is…
Q: &G Co. has an equity multiplier of 2.4, and its assets are financed with some combination of…
A: Equity multiplier = Total Assets/ Equity 2.40 = (Equity + Debt)/ Equity 2.40 x Equity = Equity+ Debt…
Q: Bartley Barstools has an equity multiplier of 3.8, and its assets are financed with some combination…
A: Equity multiplier is ratio of equity and total assets. It means, equity multiplier is equity divided…
Q: A firm has a debt-equity ratio of 1.10. The total debt ratio is closest to:
A: The debt ratio is the ratio that shows the percentage of total debts used by the company. The debt…
Q: Andyco, Inc., has the following balance sheet and an equity market-to-book ratio of 1.7. Assuming…
A: In the given question we need to calculate the weights of debt and equity for WACC calculation.…
Q: Shanfari Company is using two forms of financing - Debt and Equity. The Cost of Debt is 4.5% and…
A: The weighted average cost of capital (WACC) refers to the average cost that is paid by a company to…
Q: The following data pertains to Xena Corp. Xena Corp. Total Assets $21,249 Interest-Bearing…
A: Average Cost of debt = 10.2% Marginal tax rate = 19%
Q: firm with a debt ratio of 0.75, will have an equity multiplier of ____. a. 0.25 b. 4.00 c.…
A: Debt Ratio shows leverage of entity. It shows proportion entity’s assets financed using debt.
Q: A firm has an ROE of 3%, a debt-to-equity ratio of .5, and a tax rate of 35% and pays an interest…
A: ROE=3% Debt to equity ratio = 0.5 Tax rate = 35% Interest Rate = 6%
Q: A firm has a debt-to-equity ratio of 0.60 and a market-to-book ratio of 2.5. What is the ratio of…
A: Debt-to-equity ratio = Total liabilities / Total equity Market-to-book ratio = Market price per…
Q: If the market value of debt is $104,730, market value of preferred stock is $65,224, and market…
A: Given information: Market value of debt is $104,730 Market value of preferred stock is $65,224…
Q: A firm has a debt -to -equity of 0.69 and a market -to- book ratio of 3.0. What is the ratio of the…
A: Given: Debt to equity = 0.69 Market value of equity to book value of equity ratio = 3
Q: According to DuPont analysis, the impact of debt on a company's profitability is measured by the.…
A: Dupont analysis is a framework to analyze Fundamental performance of a corporation.
Q: Bello, Inc., has a total debt ratio of .51. a. What is its debt-equity ratto? (Do not round…
A: Debt is a borrowed portion and equity is the own funds, these two consist of the firm’s capital…
Q: Red Fire has a Debt/Equity Ratio of .15, and Equity Multiplier of 1.15, a return on sales of 6.4,…
A: Here, Debt Equity Ratio is 0.15 Equity Multiplier is 1.15 Return on Sales is 6.4 Asset Turnover is…
Q: Browning's has a debt-equity ratio of .47. What is the equity multiplier?
A: The ratio that shows the portion of the assets that are financed by equity is term as the equity…
Q: A company has an equity multiplier of 3.2, and its assets are financed with some combination of…
A: The debt to asset ratio is a leverage ratio that indicates the percentage of assets that are being…
Q: Assuming Target’s industry had an average current ratio of 1.0 and an average debtto equity ratio of…
A: Current ratio of the company means ratio of current assets with current liabilities. It means how…
Q: What is the equity multiplier and debt equity ratio if the xyz Ltd has 0.75 as a total debt ratio?
A: The debt-equity ratio is determined by debt divided by equity, whereas the equity multiplier is…
Q: Aurelia Industries has a debt to asset ratio of 0.66. Their equity multiplier is:
A: The ratio that shows the portion of the assets that are financed by equity is term as the equity…
Q: A. Using the information from the table, and assuming that the risk-free rate is 4.5% and the…
A: Risk-free rate = 4.5% Market risk premium = 6.2% Beta = 1.64
Q: ST-4 Sheth Corporation has a return on assets ratio of 6 percent. If the debt to total assets ratio…
A: Return on Assets Ratio = 6% Debt to Total Asset Ratio = 0.50 Required What is the firm's return on…
Q: Gamma Inc. has a weighted average cost of capital of 18.60%. The firm’s cost of equity is 24.40%,…
A: WACC = 18.60% Cost of Equity = 24.40% Cost of Debt = 15% Tax Rate = 34%
Q: Bartley Barstools has an equity multiplier of 2.4, and its assets are financed with some combination…
A: The relationship bet between debt ratio and equity multiplier is Debt ratio =1-1/Equity multiplier
Q: A company has a Returm on Equity of 0.39, a Profit Margin of 0.2 and Total Asset Turnover of 0.55.…
A: Here, Return on Equity is 0.39 Profit Margin is 0.2 Total Asset Turnover is 0.55
Q: The Tree House has a pretax cost of debt of 6.1 percent and a return on assets of 10.4 percent. The…
A: Cost of equity is the cost of raising new finance by way of a new equity issue. It is the cost of…
Q: Toby’s has a profit margin of 8.6 percent, a return on assets of 14.5 percent, and a debt to equity…
A: The return on equity can be calculated with the help of DuPont equation
Q: Queen, Inc., has a total debt ratio of .46. a. What is its debt-equity ratio? (Do not round…
A: Assume that the total assets of Q Inc., are $100 million. Hence, calculate the value of total debt…
Q: Triano Train Transports shows the following on their most recent balance sheet: Current Assets:…
A: Ratio is a tool which is used to measure the firm’s performance and growth by establishing relation…
Q: Calculate the WACC using the following informatio: Debt-Equity ratio is 50%. Cost of debt is 8.00%…
A: Given:Debt equity ratio=50%Cost of debt=8%Cost of equity=10%Tax rate=35%
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- Queen, Inc., has a total debt ratio of 0.04. What is its equity multiplier?Queen, Inc., has a total debt ratio of .22. a. What is its debt-equity ratio? b. What is its equity multiplier?Bartley Barstools has an equity multiplier of 3.8, and its assets are financed with somecombination of long-term debt and common equity. What is its debt to asset ratio?
- Andyco, Inc., has the following balance sheet and an equity market-to-book ratio of 1.8. Assuming the market value of debt equals its book value, what weights should it use for its WACC calculation? Assets $1,090 Liabilities & Equity Debt $460 Equity $630 The equity weight for the WACC calculation is __ % ? (Round to two decimal places.)Andyco, Inc., has the following balance sheet and an equity market-to-book ratio of 1.8. Assuming the market value of debt equals its book value, what weights should it use for its WACC calculation? Assets $1,090 Liabilities & Equity Debt $460 Equity $630 The debt weight for the WACC calculation is __ % ? (Round to two decimal places.)A firm has a debt -to -equity of 0.69 and a market -to- book ratio of 3.0. What is the ratio of the book value of debt to the market value of equity
- How do you determine the mix (percentages or weights) of debt vs equity from the Debt to Equity (D/E) Ratio? For example, if a company has a D/E Ratio = .667, what is the percentage of debt, of equity? For example, if a company has a D/E Ratio = 1, what is the percentage of debt, of equity? For example, if a company has a D/E Ratio = 1.5, what is the percentage of debt, of equity?What is the equity multiplier and debt equity ratio if the xyz Ltd has 0.75 as a total debt ratio?Austin's Cookies has a return on assets of 7.8 percent and a cost of equity of 11.9 percent. What is the pretax cost of debt if the debt–equity ratio is .72? Ignore taxes. Format as a percentage, round to two places past the decimal point, and format as "X.XX"
- Roy's Welding has a cost of equity of 14.1 percent and a pretax cost of debt of 7.7 percent. The required return on the assets is 13.2 percent. What is the debt-equity ratio based on M&M II with no taxes?Ab Inc has a total debt ratio of 0.10 What is the debt equity ratio and equity multiplier?Bello, Inc., has a total debt ratio of .87. a. What is its debt-equity ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is its equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)