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: 14. Bethlehem Corporation has a return on assets ratio of 6 percent. If the debt to total assets…
A: The return on equity is computed by dividing the Net income by the equity.
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: 4. A firm has a debt-total asset ratio of 75 percent, net income 20 million and total assetsAED 800…
A: The return on equity is calculated as net income divided by shareholders' equity.
Q: When Total Debt/ Total Sources Ratio is 70%,what is Equity / Total Debt Ratio? a)30 % b)233 %…
A: Introduction: The total equity to total debt ratio is a measure of the company's financial health.…
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: . A firm, its debt, and equity have β of 1.0, 0.5, and 3.0, respectively. What is the firm’s equity…
A: The question is based on the concept of firm (asset) beta calculation and equity ratio.
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: has a debt ratio of 55% What is its debt/equity ratio?
A: The total equity to total debt ratio is a measure of the company's financial health. The total…
Q: m has a debt-to-equity ratio of 1. Its levered cost of equity (Rs) is 10.4 %, and its pretax cost of…
A: Unlevered cost of equity would can calculated from the WACC.
Q: 10. Evaluate the below statements: 1. If the ratio of total liabilities to shareholder's equity…
A: Debt-to-Asset Ratio = Total Liabilities / Total Assets Debt-to-Equity Ratio = Total Liabilities /…
Q: Andyco, Inc., has the following balance sheet and an equity market-to-book ratio of 1.6. Assuming…
A: Given: Market to book ratio = 1.6 Market value of debt = $400 Book value of equity = $640 Market to…
Q: M&M Proposition 2 states that the cost of a firm's common stock is directly related to the…
A: solution: As per M&M Proposition 2, the company’s Cost of equity is directly proportional to the…
Q: 4. Company ABC has an equity/debt ratio of 3,2. Its WACC is 9 percent, and its expected rate of…
A: a) Calculate the cost of debt (KD) by the weighted average cost of capital (WACC) by the formula.…
Q: Ab Inc has a total debt ratio of 0.10 What is the debt equity ratio and equity multiplier?
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 ratio of 0.50. Its cost of debt is 12%. Its overall cost of capital is…
A: To calculate the cost of equity we will use WACC formula as follows: WACC = [Ke*E]+[Kd*D] Where…
Q: A firm has a debt-equity ratio of 1.10. The total debt ratio is closest to: A. 0.91. B.…
A: The debt-equity ratio represents the overall debt to the overall equity it is used to evaluate the…
Q: A firm has a debt-equity ratio of 1.10. The total debt ratio is closest to:
A: The debt ratio is the ratio that shows the percentage of total debts used by the company. The debt…
Q: Under what situation will return on equity be higher than return on investment? a. When assets…
A: (a) When assets exceed liabilities:Suppose assets is $ 70,000 and liabilities is $ 50,000 and net…
Q: A firm has a debt-to-equity ratio of 1. Its levered cost of equity (Rs) is 10.4 %, and its pretax…
A: Cost of unlevered equity can be calculate by using this equation under MM approch1963 Levered cost…
Q: a. What is the market debt-to-value ratio of the firm? b. What is University's WACC? (For all the…
A: Market value is calculated by present value of cash flows from the debt issued at given yield to…
Q: firm with a debt ratio of 0.75, will have an equity multiplier of ____. a. 0.25 b. 4.00 c.…
A: Debt Ratio shows leverage of entity. It shows proportion entity’s assets financed using debt.
Q: Bello, Inc., has a total debt ratio of .87. a. What is its debt-equity ratio? (Do not round…
A: Debt ratio =(Total debt)/(Total assets)
Q: A firm has an ROE of 3%, a debt-to-equity ratio of .5, and a tax rate of 35% and pays an interest…
A: ROE=3% Debt to equity ratio = 0.5 Tax rate = 35% Interest Rate = 6%
Q: A firm has a debt-to-equity ratio of 0.60 and a market-to-book ratio of 2.5. What is the ratio of…
A: Debt-to-equity ratio = Total liabilities / Total equity Market-to-book ratio = Market price per…
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: 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: 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: Assuming Target’s industry had an average current ratio of 1.0 and an average debtto equity ratio of…
A: Current ratio of the company means ratio of current assets with current liabilities. It means how…
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: Aurelia Industries has a debt to asset ratio of 0.66. Their equity multiplier is:
A: The ratio that shows the portion of the assets that are financed by equity is term as the equity…
Q: A. Using the information from the table, and assuming that the risk-free rate is 4.5% and the…
A: Risk-free rate = 4.5% Market risk premium = 6.2% Beta = 1.64
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: 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: Toby’s has a profit margin of 8.6 percent, a return on assets of 14.5 percent, and a debt to equity…
A: The return on equity can be calculated with the help of DuPont equation
Q: What is the debt ratio for a firm with an equity multiplier of 3.5? Multiple Cholce 71.43 percent…
A: Equity multiplier = 3.5 Equity to capital = 1/Equity multiplier = 1/3.5…
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- firm with a debt ratio of 0.75, will have an equity multiplier of ____. a. 0.25 b. 4.00 c. 0.75 d. 1.00Queen, Inc., has a total debt ratio of .22. a. What is its debt-equity ratio? b. What is its equity multiplier?Calculate Debt to Equity Ratio? Is it possible to have a (%) over 100% for debt to equity?
- How do you determine the mix (percentages or weights) of debt vs equity from the Debt to Equity (D/E) Ratio? For example, if a company has a D/E Ratio = .667, what is the percentage of debt, of equity? For example, if a company has a D/E Ratio = 1, what is the percentage of debt, of equity? For example, if a company has a D/E Ratio = 1.5, what is the percentage of debt, of equity?When analyzing a companys debt to equity ratio, lithe ratio has a value that is greater than one, then the company has: a. equal amounts of debt and equity. c. less debt than equity. b. more debt than equity. d. none of these.A firm has a debt-to-equity ratio of 0.84 and a market-to-book ratio of 3.0. What is the ratio of the book value of debt to the market value of equity? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
- A firm has a debt-to-equity ratio of 0.5 and a market-to-book ratio of 2. What is the ratio of the book value of debt to the market value of equity? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Book debt-to-market equity ratio1. The leverage ratio is the proportion of debts that a bank has compared to its equity/capital. Please answer one that is most correct Select one: a. Debt to Equity = Total debt / Shareholders Equity. b. Debt to Capital = Total debt / Capital (debt+equity) c. There are different leverage ratios such as. Debt to Equity = Total debt / Shareholders Equity. Debt to Capital = Total debt / Capital (debt+equity) Debt to Assets = Total debt / Assets. 2. Which of the following amortization methods is most likely to evenly distribute the cost of an intangible asset over its useful life? Select one: a. Units-of-production method. b. Straight-line method. c. Double-declining balance method 3. What ratio is a cash and marketable securities based (it removes Inventory) ? Select one: a. Quick Ratio b. Current Ratio c. Dupont Analysis set of ratios 4. Which of the following is an appropriate method of computing free cash flow to the firm? Select one: a. Add operating cash flows to…Give typing answer with explanation and conclusion If the company were to borrow more (or less), how would that impact the cost of debt and the WACC? Provide a specific assumed example. Weight of Equity 76.10% Weight of Debt 23.90% Cost of Equity 6.98% Cost of Debt 2.55% Tax Rate WACC 5.92%
- May I ask for a solution and explanation to the problem for a better understanding. Thank you! 9. Using carrot corp., what is the debt-to-equity ratio? a. 30.77 : 1 b. 31.60 : 1 c. 30.50 : 1 d. 31.20 : 1Browning's has a debt-equity ratio of .47. What is the equity multiplier?If a bank has a leverage ratio of 0.5 and a return on assets of 1%, what is its return on equity? Select one: OA 0.2% O B. 2% OC 5% O D. 20%