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- Vigo Vacations has $200 million in total assets, $5 million in notes payable, and $25 million in long-term debt. What is the debt ratio?Last year Jullan Corp. had sales of P302,225 operating costs of P267,500 and year-end assets of P195,000. The debt-to-total-assets ratio was 27%, the interest rate on the debt was 8.2% and the firm's tax rate was 37%. The new CFO wants to see how the Return on Equity (ROE) would have been affected if the firm had used a 45% debt ratio. Assume that sales and total assets would not be affected, and that the interest rate and tax rate would both remain constant. By how much would the ROE change (increase or decrease in percentage) in response to the change in the capital structure?Duffert Industries has total assets of $970,000 and total current liabilities (consisting only of accounts payable and accruals) of $115,000. Duffert finances using only long-term debt and common equity. The interest rate on its debt is 9% and its tax rate is 25%. The firm's basic earning power ratio is 17% and its debt-to-capital ratio [Long-term debt/(Long-term debt + Common Equity)] is 40%. What are Duffert's ROE and ROIC? Do not round your intermediate calculations.
- Bostian, Inc. has total assets of $665,000. Its total debt outstanding is $185,000. The Board of Directors has directed the CFO to move towards a debt-to-assets ratio of 55%. How much debt must the company add or subtract to achieve the target debt ratio? Select the correct answer. a. $180,626 b. $180,750 c. $180,812 d. $180,874 e. $180,688Lilly Inc has a DSO of 20 days, and its annual sales are $3,550,000. What is its accounts receivable balance? Assume that it uses a 365-day year. Lilly's Tax has a market/book ratio equal to 1. its stock price is $13 per share and it has 4.6 million shares outstanding. The firm's total capital is $115 million and its finances with only debt and common equity. what is its debt-to-capital ratio? Lilly's Tax has an ROA of 11%, a 5% profit margin, and an ROE of 23%. What is its total assets turnover? What is its equity multiplier? Lilly's Tax has an EPS of $2.40, a book value per share of $22.84, and a market/book ratio of 27X. What is its P/E ratio?The Mikado Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term debt plus equity) of .49 and a current ratio of 1.38. Current liabilities are $2,450, sales are $10,630, profit margin is 10 percent, and ROE is 15 percent. What is the amount of the firm’s net fixed assets?
- The Lawrence Company has a ratio of long term debt to long term debt plus equity of .39 and a current ratio of 1.7. Current liabilities are 950, sales are 6370, profit margin is 9.8 percent, and ROE is 20 percent. What is the amount of the firms net fixed assets?Legget industries has total assets of $1,050,000 and total current liabilities (consisting only of accounts payable and accruals) of $150,000. Duffert finances using only long-term debt and common equity. The interest rate on its debt is 9% and its tax rate is 40%. The firm's basic earning power ratio is 15% and its debt-to capital rate is 40%. What are Duffert's ROE and ROIC? Do not round your intermediate calculations.Toyto Corp. has net working capital of $1,370, current liabilities of $3,720 and inventory of $1,950. What is the current ratio? What is the quick ratio? Doria Inc. has sales of $29 million, total assets of $17.5 million and total debt of $6.3 million. If the profit margin is 8 percent, what it the net income? What is the ROA? What is the ROE? Orion Inc. has a total debt ratio of 0.63. What is the debt-equity ratio? What is the equity multiplier?
- Last year Gray Corp. had net sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm's total-debt-to-total-capital ratio was 45.0%. The firm uses only debt and common equity as financing. Based on the DuPont equation, what was the ROE?Beranek Corp has $800,000 of assets (which equal total invested capital), and it uses no debt—it is financed only with common equity. The new CFO wants to employ enough debt to raise the total debt to total capital ratio to 40%, using the proceeds from borrowing to buy back common stock at its book value. How much must the firm borrow to achieve the target debt ratio? a. $571,429 b. $320,000 c. $1,120,000 d. $160,000 e. $480,000Duffert Industries has total assets of $970, 000 and total current liabilities (consisting only of accounts payable and accruals) of $115,000. Duffert finances using only long-term debt and common equity. The interest rate on its debt is 9% and its tax rate is 25%. The firm's basic earning power ratio is 17% and its debt - to capital rate is 40% What are Duffert's ROE and ROIC? Do not round your intermediate calculations. Group of answer choices a. 12.68%; 14.03% b.13.63%; 14.46% с 10.90%; 12.44% d. 15.54%; 16.06% e. 8.86%; 12.73%
