Find Bravo Company's net income at a 20% debt level. It has earnings before interest and taxes of $1,000,000, and currently has $10,000,000 in equity and $0 debt. Company Bravo is considering a 20% debt ratio and can acquire capital at 8% interest. The applicable tax rate is 40%.

SLM, Inc., with sales of $1,000, has the following balance sheet:SLM, Incorporated Balance Sheet as of 12/31/X0assetsLiabilities and equityAccounts receivable$200Trade accounts payable$  200Inventory400Long-term debt600Plant800Equity600$1, 4 0 0$1, 4 0 0It earns 10 percent on sales (after taxes) and pays no dividends.a.Determine the balance sheet entries for sales of $1,500 using the percent of sales method of forecasting

In Geri Co, the 5 year weighted average historical pre-tax economic earnings are $1,250,000. The tax rate is 28%. The hurdle and debt rate are 12.25%. The adjusted net assets from prior year-end is $2,050,000. The cap rate applicable to this kind of company is 25% pretax. Determine the value of this business using reasonable rate return on assets. a. $3,995,500 b. $2,050,000 c. $6,045,500 d. Cannot be determined from the information provided.

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Calculate the WACC using the following information: Debt-Equity ratio is 50%. Cost of debt is 8.00% Cost of equity is 10.00% Company pays tax at 35%.

Take it all away has a cost of equity of 10.84 percent, a pretax cost of debt of 5.47 percent, and a tax rate of 39 percent.  The company's captial structure consists of 76 percent debt on a book value basis, but debt is 38 percent of the company's value on a market value basis.  What is the company's WACC

16. 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.

Broward Manufacturing recently reported the following information:Net income $615,000ROA 10%Interest expense $202,950Accounts payable and accruals $950,000Broward’s tax rate is 25%. Broward finances with only debt and common equity, so it has no preferredstock. 40% of its total invested capital is debt, and 60% of its total invested capital is common equity.Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital(ROIC).

Bolero Corporation has one long term loan (interest bearing debt) of $700,000 at an interest rate of 8%.  The company has accounts payable of $300,000 (non-interest bearing) and equity of $1,000,000.  It estimates that its cost of equity is 16%.  Its tax rate is 35%.  A. What is the company’s weighted average cost of capital on interest bearing debt and equity? B. What is Bolero Corporation’s weighted average cost of capital on all liabilities and equity (or total invested capital)?

Estimate the gross income for Bling Enterprises, which reports a CFAT of $2.5 million, $900,000 in expenses, $900,000 in depreciation charges, and has an effective tax rate of 26.4%.