Calculate the equity multiplier of the ABC Company if the total debt ratio of is 1.5

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: 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: 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: 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: Andyco, Inc., has the following balance sheet and an equity market-to-book ratio of 1.4. Assuming…

A: Market value of equity = Market to book ratio * Book value of equity = 1.4*570 =798

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: 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: 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: If I remember correctly, the DuPont equation breaks down our ROE into three component ratios: the…

A: Dupont Equation: Return on equity = Net profit margin * Total asset turnover ratio * Equity…

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: What is the cost of equity for a firm where the required return on assets is 15.71%, the cost of…

A:

Q: Find the working capital ratio, Quick Ratio, eatnings per share (EPS), Debt- equity ratio with the…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: The proportions of debt and equity used to determine the weighted average cost of capital for the…

A: The answer for the True or false question and relevant explanation are presented hereunder :…

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: 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: Find the firm’s Cost of equity, given only the following information about the firm: the firm’s cost…

A: The cost which the firm has to bear for having equity funds in their capital structure is called…

Q: Match the following ratio functions with the ratio (place the number of your chosen answer into the…

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…

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: 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: (DuPont analysis) Garwryk, Inc., which is financed with debt and equity, presently has a debt ratio…

A: Solution : Given, Debt ratio = 76 percent   Now, Calculating the firm's equity multiplier , Formula,…

Q: Calculate the following ratios based on the balance sheet, income statement and cash flow prepared…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

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: If a company issues common stock and coupon bonds and the debt-to-equity ratio are 0.85, the cost of…

A: Given information Debt Equity ratio = 0.85 Cost of equity = 12% Pretax cost of debt = 7% Tax rate =…

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: 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: 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: 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: What do the following ratios reveal about the financial health of a company? And how do I calculate…

A: Long Term Debt Paying Ability Ratios are also known as Leverage or Capital Structure Ratios. These…

Q: What is the equity multiplier if the total assets are $9,878.20 and total shareholder equity is…

A: Information Provided: Total assets = $9878.20 Total share holder equity = $6230.20

Q: Calculate the WACC using the following information: Debt-Equity ratio is 50%. Cost of debt is 8.00%…

A: WACC  is the weighted average cost of capital In order to calculate the WACC, first of all lets…

Q: If a company’s debt-to-equity ratio is 40% calculate its debt-to-value and equity-to-value ratios.…

A: Debt to equity ratio = 40%

Q: Firm A and Firm B have debt/total asset ratios of 33 percent and 23 percent and returns on total…

A: Debt-total assets ratio = Total liabilities / Total assets Equity = Total assets - Total liabilities…

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: Draiman Company has a debt-equity ratio of 0.75. Return on assets is 10.4 percent, and total equity…

A: The equity multiplier is an indicator of risk that computes the portion of total assets that is…