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: Bartley Barstools has an equity multiplier of 3.8, and its assets are financed with some combination…
A: Debt to assets ratio is used to evaluate the relationship between the total liabilities and total…
Q: e following data pertains to Xena Corp. Xena Corp. Total Assets $21,249 Interest-Bearing Debt…
A: In this we have calculate the debt and cost of equity and find out the weighted average cost of…
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: When Total Debt/ Total Sources Ratio is 70%,what is Equity / Total Debt Ratio? a)30 % b)233 %…
A: Introduction: The total equity to total debt ratio is a measure of the company's financial health.…
Q: Aurelia industries has a debt to asset ratio of 0.71. The equity multiplier is:
A: The ratio that shows the portion of the assets that are financed by equity is term as the equity…
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: If a firm has a P/E ratio of 15, and a ROE of 14 %, what is the market to book value of equity?
A: Long-term Solvency: Long-term solvency shows the strength and the ability of the company to pay its…
Q: . A firm, its debt, and equity have β of 1.0, 0.5, and 3.0, respectively. What is the firm’s equity…
A: The question is based on the concept of firm (asset) beta calculation and equity ratio.
Q: Analyze and compare the following firms financial ratio results. Which seems to be in a better…
A: The financial ratio refers to the computation of the company’s level of performance compared with…
Q: has a debt ratio of 55% What is its debt/equity ratio?
A: The total equity to total debt ratio is a measure of the company's financial health. The total…
Q: Refer to Exhibit 4.1 What is the firm's total debt to total capital ratio? Do not round your…
A: The question is based on the concept of calculation of total debt and total capital. The total debt…
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: A firm has a debt-to-equity ratio of 0.84 and a market-to-book ratio of 3.0. What is the ratio of…
A: given information debt to equity ratio = 0.84 market to book ratio = 3.0
Q: rbitrary FirmName Ltd has a target debt-equity ratio of 1.20. Its weighted average cost of capital…
A: Weighted Average cost of capital is sum product of cost of each component in capital structure and…
Q: A firm has a debt-equity ratio of 1.10. What is the total Debt ratio? A) 0.52 B) 1.10
A: The debt to total ratio can be calculated as ratio of total debt and total assets.
Q: If Flagstaf currently maintains a.5 debt to equity ratio, then the value of Flagstaf as an all…
A: Information Provided: Free cash flow = $8 million Growth rate = 3% Equity cost of capital = 13% Debt…
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: A firm has a debt-to-equity ratio of 0.50. Its cost of debt is 12%. Its overall cost of capital is…
A: To calculate the cost of equity we will use WACC formula as follows: WACC = [Ke*E]+[Kd*D] Where…
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: what would be the debt to equity ratio for each year in this scenario?
A: Debt-equity ratio is calculated by dividing total debts by the shareholder's equity. It shows the…
Q: The following Information is l'or Cougar Corp, an applance manufacturer. Given this Information…
A: Return on Equity: It is the tool used for measuring a company's financial performance. It helps in…
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: 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: What is the debt ratio for a firm with an equity multiplier of 3.5? ____ 44.09 percent ____ 58.51…
A: Debt ratio of a firm measures the weightage of debt in the total assets held by the firm.
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 firm has a debt-to-equity of 0.57. What is the debt-to-total assets ratio?
A: Given:Debt to equity or D/E = 0.57A = Total assetsD/A = debt to total assets
Q: What would be the weight used for equity in the computation of FarCry's WACC? (Round your answer to…
A: Weighted average cost of capital (WACC) refers to the joint cost of company's capital from all the…
Q: A firm has a debt-to-equity ratio of 2. What is its equity multiplier?
A: Debt to equity ratio = Total debt / Total equity Debt ratio of 2 means debt is 2 times of equity…
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: 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: What is the debt ratio for a firm with an equity multiplier of 3.5? Multiple Cholce 71.43 percent…
A: Equity multiplier = 3.5 Equity to capital = 1/Equity multiplier = 1/3.5…
Q: . If the market value of debt is $159,434, market value of preferred stock is $88,315, and market…
A: Preferred stock is the type of stock that has the features of both equity and debt. It is also…
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- Queen, Inc., has a total debt ratio of .22. a. What is its debt-equity ratio? b. What is its equity multiplier?Queen, Inc., has a total debt ratio of 0.04. 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?
- What is the equity multiplier and debt equity ratio if the xyz Ltd has 0.75 as a total debt ratio?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?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
- F&G Co. has an equity multiplier of 2.4, and its assets are financed with some combination of long-term debt and common equity. What is its debt-to-assets ratio?Aurelia Industries has a debt to asset ratio of 0.66. Their equity multiplier is:Calculate Debt to Equity Ratio? Is it possible to have a (%) over 100% for debt to equity?
- firm with a debt ratio of 0.75, will have an equity multiplier of ____. a. 0.25 b. 4.00 c. 0.75 d. 1.00Queen, Inc., has a total debt ratio of .46. 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.)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.)