15-5. (Describing a firm's capital structure) (Related to Checkpoint 15.1 on page 502)Home Depot, Inc. (HD), operates as a home improvement retailer primarily in theUnited States, Canada, and Mexico. The balance sheet for Home Depot for February3, 2008, included the following liabilities and owners' equity:($ thousands)Financial StructureLiabilities$ 9,185,0002,047,0001,474,000$12,706,00011,383,0002,521,000$13,904,000$17,714,000$44,324,000Accounts payableShort-term/current debtOther current liabilitiesTotal current liabilitiesLong-term debtOther long-term liabilitiesLong-term liabilitiesStockholders’ equityTotala. What are Home Depot's debt ratio and interest-bearing debt ratio?b. If Home Depot has common equity with a market value of $44.9 billion and noexcess cash, what is the firm's debt-to-enterprise-value ratio? (Hint: Assume thatthe market value of the firm's interest-bearing debt equals its book value.)

The company's financial structure is made up of long-term capital funds that it has raised from…

Answered: 15–5. (Describing a firm's capital…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

You are an investment analyst at FI Investments tasked to value FBC firm a Southern Agricultural Conglomerate. The following financial information was recently released for FBC. The company’s 2018 and 2017 annual financial reports are contained in tables 1 and 2 below, along with important additional information: Table 1: FBC statement of financial position (R millions) 2018 2017 Cash and equivalents R149 R83 Accounts receivable 295 265 Inventory 275 285 Total current assets R719 R633 Total fixed assets 3 909 3 856 Accounts payable 228 220 Notes payable 0 0 Total current liabilities 228 220 Long term debt 1 800 1 650 Total liabilities and shareholders equity 3 909 3 856 Number of shares outstanding (millions) 100 100 Additional information: Depreciation (2018): R483. The firm spent R250m in profitable projects during the…
Pls answer all questions with solution.thank you
A condensed balance sheet for Simultech Corporation and a partially completed vertical analysis are presented below. Complete the vertical analysis by computing each missing line item as a percentage of total assets. (Round your answers to the nearest whole percent.) SIMULTECH CORPORATION Balance Sheet (summarized) January 31 (in millions of U.S. dollars) Cash $433 29 % Current Liabilities $409 27 % Accounts Receivable 294 19 Long-term Liabilities 495 33 Inventory 206 14 Total Liabilities 904 Other Current Assets 109 Common Stock 118 Property and Equipment 27 2 Retained Earnings 492 32 Other Assets 445 29 Total Stockholders’ Equity 610 Total Assets $1,514 100 % Total Liabilities & Stockholders’ Equity $1,514 100 % 2A. What percentage of Simultech’s total assets relate to inventory? (Round your answer to the nearest whole percent.) 2B. What percentage of Simultech’s total assets relate to property…
7. The Hopewell Pharmaceutical Company's balance sheet and income state- ment for last year are as follows: Balance Sheet (in Millions of Dollars) Assets Cash and marketable securities $1,100 Accounts receivable 1,300 Inventories* 800 200 Other current assets Total current assets Plant and equipment (net) Other assets Total assets $3,400 2,300 1,000 $6,700 Net sales Cost of sales Liabilities and Equity Accounts payable Accrued liabilities (salaries and benefits) Other current liabilities Earnings before taxes Taxes Earnings after taxes (net income) Total current liabilities Long-term debt and other liabilities Selling, general, and administrative expenses Other expenses Total expenses Common stock Retained earnings Total stockholders' equity Total liabilities and equity *Assume that average inventory over the year was $800 million that is, the same as ending inventory. Income Statement (in Millions of Dollars) a. Determine Hopewell's cash conversion cycle. b. Give an interpretation of…
10. The Hopewell Pharmaceutical Company's balance sheet and income statement for last year are as follows: CHALLENGE Balance Sheet (in Millions of Dollars) Assets Liabilities and Equity Cash and marketable $1,100 Accounts payable*** $900 securities Accounts receivable* 1,300 Accrued liabilities Inventories** 800 (salaries and benefits) 300 Other current assets 200 Other current liabilities 700 Total current assets $3,400 Total current liabilities $1,900 Plant and equipment (net) 2,300 Long-term debt and other Other assets 1,000 liabilities 1,000 Total assets $6,700 Common stock 1,800 Retained eamings 2,000 Total stockholders" equity $3,800 Total liabilities and equity $6,700 *Assume that average accounts receivable are the same as ending accounts receivable. **Assume that average inventory over the year was the same as ending inventory. ***Assume that average accounts payable are the same as ending accounts payable. Income Statement (in Millions of Dollars) Net sales $6,500 Cost of…
A7 please help....
The project of the sister company is 7.000.000 TL. The company will earn 3.7 million TL in the first year from this project and for 15 years, and this amount will continue to decrease by 350,000 TL each year. If interest=30%, should this project be entered?
Analyze Deere & Company Deere & Company (DE) manufactures and distributes farm and construction machinery that it sells around the world. In addition to its manufacturing operations, Deere's credit division loans money to customers to finance the purchase of their farm and construction equipment. The following information is available for three recent years (in millions except per-share amounts): Year 3 Year 2 Year 1 Net income (loss) Preferred dividends $1,523.9 $1,940.0 $3,161.7 $ 0.00 $ 763.7 $ 680.0 $ 664.0 $0.00 $ 0.00 Interest expense Shares outstanding for computing earnings per share 315 334 363 Cash dividend per share $ 2.40 $ 2.40 $ 2.22 $ 57,965 $ 59,642 $ 60,429 $ 6,644 $ 7,912 $ 9,667 $ 92.03 $ 81.10 $ 85.58 Average total assets Average stockholders' equity Average stock price per share 1. Calculate the following ratios for each year (Round ratios and percentages to one decimal place, except for per-share amounts. Round per-share amounts to two decimal places.): Year 3…
The Green Carpet has current liabilities of $72,100 and accounts receivable of $107,800. The firm has total assets of $443,500 and net fixed assets of $323,700. The owners' equity has a book value of $191,400. What is the amount of the net working capital? a. $47,700 b. $6,500 c. $50,100 d. -$29,700 e. -$18,800
Hasbro, Inc. and Mattel, Inc. are the two largest toy companies in North America. Condensed liabilities and stockholders' equity from a recent balance sheet are shown for each company as follows (in thousands): Hasbro Mattel Liabilities: Current liabilities $2,628,000 $4,663,000 Long-term debt 1,415,000 1,850,000 Other liabilities 888,800 Total liabilities $4,043,000 $7,401,800 Shareholders' equity: Common stock $211,000 $952,000 Additional paid in capital 653,000 3,489,000 Retained earnings 4,065,000 3,596,000 Accumulated other comprehensive income (loss) and other equity items 47,000 (582,000) Treasury stock, at cost (1,866,000) (2,168,000) Total stockholders' equity $3,110,000 $5,287,000 Total liabilities and stockholders' equity $7,153,000 $12,688,800 The income from operations and interest expense from the income statement for both companies were as follows (in thousands): Hasbro Mattel Income from operations $975,360 $2,593,350 (before income tax) Interest expense 76,800 229,500…

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS