Kappa SA in 2021 had pre-tax profits of 100,000, equity 450,000 and return on equity 20%. How much did equity increase in 2021? Choose one: a. 100,000 b. Not at all c. None of the suggested answers d. 50,000
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Kappa SA in 2021 had pre-tax profits of 100,000, equity 450,000 and return on equity 20%. How much did equity increase in 2021?
Choose one:
a. 100,000
b. Not at all
c. None of the suggested answers
d. 50,000
Step by step
Solved in 2 steps
- Use the following information about Red Rocks Inc. to answer the following question: Assume the following: Pays no taxes Return on net operating assets (RNOA) = 18% %3D Has $2,000 in net operating assets financed by equity At the beg. of the year borrows $1000 at 8%. Uses debt to buy additional operating assets. What is the return on equity (ROE) for Red Rocks? Edit View Insert Format Tools Table 12pt v Paragraph v B IU A e T?v I.You are thinking of investing in Nikki T's, Incorporated. You have only the following information on the firm at year-end: Net income is $250,000, total debt is $2.5 million, and debt ratio is 55 percent. What is Nikki T's ROE for next year? Note: Do not round intermediate calculations and round your final answer to 2 decimal places. ROE %AFN EQUATION Refer to Problem 16-1 and assume that the company had 3 million in assets at the end of 2019. However, now assume that the company pays no dividends. Under these assumptions, what additional funds would be needed for the coming year? Why is this AFN different from the one you found in Problem 16-1?
- Technology Inc. expects to have the following data during the coming year. What is Hernandez's expected ROE? Also, discuss the importance of the ROE to a company and to shareholders. $200,000 Interest rate 65% Tax rate Assets 8% D/A 40% EBIT $25,000A firm with sales of $1,000,000, net profits after taxes of $60,000, total assots of $1,500,000, and totol liabilities of $750,000 has a return on equity ot Select one: O a. 15 percent. b. 20 percent. c. 4 percent. O d. 8 percent. e. None of the aboveChoose the correct letter of answer and provide a solution A firm has profit before tax of P63 million. If the company's times interest covered ratio is 8 times, what is the total interest charge? a. P3 Millionb. P6 Millionc. P9 Milliond. P12 Millione. P15 Million
- You've collected the following information about Caccamisse, Incorporated: Sales Net income Dividends Total debt Total equity = a. Sustainable growth rate b. Additional borrowing c. Growth rate = = = = $ 330,000 $ 18,700 $ 7,500 $ 70,000 $ 101,000 a. What is the sustainable growth rate for the company? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. Assuming it grows at this rate, how much new borrowing will take place in the coming year, assuming a constant debt-equity ratio? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What growth rate could be supported with no outside financing at all? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. % %10 Alawad Company’s capital employed on 1-1 2020 was OMR 150,000 and the profits for the last five years were as follows: Year 2015 OMR 10,000, Year 2016 OMR 20,000, Year 2017 OMR 10,000, Year 2018 OMR 25,000 and Year 2019 OMR 15,000. Calculate Super profit given that the normal rate of return is 5%. a. OMR 7,500 b. OMR 8,500 c. None of the options are correct d. OMR 16,000If the state tax rate is 20% and the federal tax rate is 30%, what is the total effective tax rate? a. 34% b. 50% c. 44% d. 37% 2. Holding all other variables constant, which of the following would increase return on equity? An increase in _____________. a. the tax rate b. the equity ratio (equity/total assets) c. total assets d. total asset turnover
- You've collected the following information about Caccamisse, Incorporated: Sales Net income Dividends Total debt Total equity = = a. Sustainable growth rate b. Additional borrowing c. Growth rate $ 280,000 $ 17,700 $ 6,500 $ 60,000 $ 91,000 a. What is the sustainable growth rate for the company? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. Assuming it grows at this rate, how much new borrowing will take place in the coming year, assuming a constant debt-equity ratio? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What growth rate could be supported with no outside financing at all? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Answer is complete but not entirely correct. 24.14% $ 11,574.00 X 4.00 %15) Residual Income Valuation - Grand Central Video's accountant forecasts the following Net Income for the next two years: Year 2021 $2,420,000 2022 $2,600,000 She estimates that Grand Central's Re = 12%, and its growth rate g=8%. The company does not give a dividend. If its book value is $15,000,000, what valuation does the accountant place on the company? Please choose the answer closest to your calcualtion. А. $34,287,000 В. $9,082,000 С. $21,217,000 D. $24,073,00In 2019 Quick Burger had a capital expenditure of $3055. A. calculate quick burgers free cash flow in 2019 by millions B.if quick Burger was financed entirely by equity how much more tax would the company have paid assume tax rate of 21% round to two decimals. Answer by millions. C. what was the company's free cash flow have been if it was all equity finance answered by millions
