Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- Assume Skyler Industries has debt of $4,950,000 with a cost of capital of 7.2% and equity of $4,950,000 with a cost of capital of 10.8%. What is Skyler’s weighted average cost of capital? Round your intermediate calculations and final answer to 3 decimal places.arrow_forward16. In December 2020, Remal Co. had AED 200 million debt, AED 40 million in operating income, interest expense AED 4 million, AED 450 million in total assests and tax rate 35 percent. The ROA ratio is: ROA= Net Income + Interest exp Total assets.arrow_forward14 A. Assume Skyler Industries has debt of $4,377,783with a cost of capital of 9.7% and equity of $5,791,640 with a cost of capital of 6%. What is Skyler’s total weighted average cost of capital? Round to the nearest hundredth, two decimal places and submit the answer in a percentagearrow_forward
- The Nelson Company has $1,137,500 in current assets and $455,000 in current liabilities. Its initial inventory level is $310,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 1.8? Do not round intermediate calculations. Round your answer to the nearest dollar. $ What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds? Do not round intermediate calculations. Round your answer to two decimal places.arrow_forwardEe 68.arrow_forwardBunny Hip and Hop Brewery has $1,710,000 in assets and $661,000 of debt. It reports net income of $102,000 a. What is its ROA? (Do not round intermediate calculations, Round the final answer to 2 decimal places.) Return on assets b. What is the return on shareholders' equity? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Return on equity c. If the firm has an asset turnover ratio of 18 times, what is the profit margin? (Round the final answer to 2 decimal places) Profit marginarrow_forward
- I already have the first 4 down working capital value: $2,790,000 current ratio value: 4.1 quick ratio: 2.5 accounts receivable turnover: 16 if someone can please please pleassseee help me with 5-18 please. I have been so stressed with this question and i just need answer and explanation pleasearrow_forwardA company has a 12% ROA. Assume that a company’s total assets equal total invested capital, and that the company has no debt, so its total invested capital equals total equity. What is the company’s ROE?arrow_forwardBaker Industries' net income is $24,000, its interest expense is $4,000, and its tax rate is 25%. Its notes payable equals $24,000, long-term debt equals $75,000, and common equity equals $240,000. The firm finances with only debt and common equity, so it has no preferred stock. What are the firm's ROE and ROIC? Do not round intermediate calculations. Round your answers to two decimal places. ROE: ROIC: 10 Hide Feedback Partially Correctarrow_forward
- Baker Industries' net income is $27,000, its interest expense is $5,000, and its tax rate is 25%. Its notes payable equals $26,000, long-term debt equals $75,000, and common equity equals $250,000. The firm finances with only debt and common equity, so it has no preferred stock. What are the firm's ROE and ROIC? Do not round intermediate calculations. Round your answers to two decimal places. ROE: ROIC: % %arrow_forwardUse the following information to answer this question. Total assets Total current liabilities Total expenses Total liabilities Total revenues Tax rate $150,000 105,000 70,000 110,000 80,000 40% After -tax cost of capital 12% Invested capital is defined as total assets less total liabilities. (round your answers te one decimal ) Capital turnover equal O A) 53.3% B) 2 OC) 6.7% D) 28.6%arrow_forward
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